15th Sep 2015 06:58
LONDON (Alliance News) - Genel Energy PLC Tuesday said it has signed a definitive sale and purchase agreement to acquire a 36% stake in the Bina Bawi field in the Kurdistan region of Iraq for up to USD150.0 million.
Genel will acquire the 36% stake in the field held by OMV Exploration and Production, and the deal is now only subject to government approval, which is expected shortly, it said.
Genel will make an initial payment of USD5.0 million and will then make a contingent payment of USD70.0 million once gas production from the Bina Bawi and nearby Miran field exceeds agreed threshold volumes. Those threshold volumes were not disclosed.
Two years after that first contingent payment is made, Genel will then make a further contingent payment of USD75.0 million.
The deal to acquire OMV's stake in the Bina Bawi field follows on from a deal signed with the Kurdistan regional government and agreement to purchase the OMV's stake in the Bina Bawi field back in 2014.
Genel is aiming to develop both the Miran and Bina Bawi gas fields through production sharing contracts with the regional government.
Genel said it has also agreed to offset USD25.0 million owed to the company from the regional government for production from the Miran field once the deal is completed.
By Joshua Warner; [email protected]; @JoshAlliance
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