Genel Energy, which is headed by former BP Chief Executive Tony Hayward, is in the early stages of merger talks worth more than $2 billion with New Age African Global Energy, according to Sky News.
The largest independent oil producer and holder of reserves and resources in the Kurdistan Region of Iraq, Genel Energy has been affected by a lack of payment by the Kurdistan Regional Government for its activity in the region. The energy firm holds onshore and offshore exploration interests in a number of African countries, including Ethiopia and Morocco, where New Age also holds stakes in exploration acreage.
Analysts at Tudor, Pickering, Holt & Co described the development as “directionally positive” in a brief research note and stated that “GENL should take some of its eggs out of the Kurdish basket”. TPH & Co also said that New Age’s “combination with GENL will be complimentary and could create and a balanced E&P with considerable scale”.
Rigzone called spokespersons from both Genel and New Age. The former was unavailable for comment and the latter declined to comment on the deal at this time.
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