KRG Gas Ambitions Advance As Genel Consolidates Stakes

Anglo-Turkish independent Genel Energy on 22 September completed its purchase of Austrian energy group OMV’s 36% operator’s stake in the Kurdistan Regional Government’s (KRG) Bina Bawi gas field, putting the firm in almost full control of the two blocks slated to supply 10 bcm/year of KRG gas exports to Turkey.

Genel is also in the process of acquiring the KRG’s 20% interest in Bina Bawi and 25% of the nearby Miran block giving it 100% of each. Pending this, Genel now has an 80% operator’s interest at Bina Bawi and 75% of Miran. However, the timing of any start-up remains unclear. Genel is holding off sanctioning the required $2.9bn upstream capex investment (including $1bn to first gas), until it starts receiving regular payments from the KRG for its 95,000 b/d of local oil output. Midstream capex (two processing facilities with a combined capacity to process 14 bcm/year of raw gas into 10 bcm/year of sales gas) would be a further $2.5bn, Genel says.


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