Genel Energy announced Tuesday that it has signed an agreement with OMV to buy its 36 percent operated stake in the Bina Bawi field, located in the Kurdistan Region of Iraq.
As part of the agreement, Genel will pay OMV an upfront payment of $5 million. A contingent payment of $70 million will be transferred to OMV once gas production exceeds agreed threshold volumes from the Miran and Bina Bawi fields and a further contingent payment of $75 million is payable two years after the date of the second payment. Completion of the acquisition is subject to Kurdistan Regional Government approval, which is expected shortly, according to Genel.
In consideration of the KRG agreeing to the transfer of OMV’s stake in the Bina Bawi field, on completion of the acquisition Genel has stated that it will offset $25 million against monies owed by the KRG to Genel for past expenses incurred on the Miran field.
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