Genel Energy has signed a contract with Kurdistan Region of Iraq to develop its two gas fields — Miran and Bina Bawi
Meanwhile, Genel Energy has also agreed to buy OMV AV’s 36 per cent stake in Bina Bawi field for US$150mn, paying US$20mn at the completion of the deal and the rest when gas output, due from 2018, begins.
Genel Energy, headed by Officer Tony Hayward, said that it expects its deal with the Kurdistan Regional Government to develop the gas fields to be approved by the end of the year.
Turkey has plans to build a pipeline extension to import gas from the region, according to unnamed Turkish officials. The pipeline is expected to carry as much as 20bn cu/m of gas a year.
The regional government, in 2013, had signed a deal to deliver Turkey four billion cu/m of gas annually from 2017, rising to 10bn by 2020, Genel Energy said in August this year.
There was also an option to raise that to 20bn cu/m, it said.
Turkey now plans to hold a tender for construction of the 180 km pipeline from the country’s Mardin province to the town of Silopi on the border in 2015.
Genel Energy said that it will need to spend about US$1bn over three years to develop the fields, containing 311.4bn cu/m of gas.
Julian Metherell, CFO at Genel Energy, said, “This is big. We now have a binding contractual agreement with the KRG on the development.”
The terms are more attractive than the market expected, he added.
