UK’s Genel Energy to invest $60 mln in Iraq’s Sarta & Qara Dagh blocks

UK-based oil and gas company Genel Energy PLC, unit of Turkish construction to energy company Cukurova Group, has agreed to purchase stakes in Sarta and Qara Dagh blocks, in the Kurdistan Region of Iraq.

Under the pact, Genel will invest an estimated total of about $60 million until the end of 2020  in Sarta and Qara Dagh blocks, which are operated by U.S.-based energy company Chevron.

Genel will acquire 30 percent stake in the Sarta licence by paying a 50 percent share of ongoing field development costs until a specific production target is reached and Chevron will retain a 50 percent stake in the Sarta licence.

The wells are expected to be placed on production in the first phase of development. The closing is subject to approval from the Kurdistan Regional Government, which will remain with 20 percent of the blocks.