Genel is acquiring interests in the Chevron operated Sarta and Qara Dagh blocks.
Genel will acquire a 30% interest in Sarta and will pay 50% of the field development costs until a specific production target is reached; there will also be a production milestone contingent payment – total spend by Genel is estimated at USD60 million. Chevron will retain a 50% interest and the KRG holds the remaining 2% interest which is carried by the oil companies. Sarta currently has three wells with both Sarta-2 and Sarta-3 having flow tested at c.7,500bopd. The first phase of development will produce from these wells with initial export via trucking.
Qara Dagh is an appraisal licence and Genel will acquire a 40% operated interest through a carry. Chevron will retain 40% interest and the KRG holds the remaining 20% interest. The last well (Qara Dagh-1) was drilled in 2011 which showed complex geology. Genel plans to drill Qara Dagh-2 in 2020.
Genel is slowly rebuilding its profile following a series of disastrous downgrades in Kurdistan – this is now behind the company and it is receiving good cash flow from the Tawke production which it can now reinvest in Kurdistan.
