Genel Energy to acquire stake in the Miran Block from Heritage Oil

Genel Energy will soon acquire a 26 per cent stake in Miran Block in the Kurdistan Region of Iraq from Heritage Oil.Heritage Oil has said that Heritage Energy Middle East (HEME), which is its wholly owned subsidiary, has signed a binding agreement with Genel Energy for the sale of stake in the production sharing contract. The upstream exploration and production firm added that it will also sell interest in the related joint operating agreement to Genel Energy.
Genel Energy will provide a consideration of $156 million and $ 294 million exchangeable loan completion of the sale to HEME. The sale of the interest is expected to be completed before 22 August. After the sale, Heritage will hold a 49 stake in Miran production sharing contract while Genel Energy will hold the remaining 51 per cent.
The two companies will operate as joint operators in the Miran Block. The two companies will work under an amended Miran joint operating agreement that will include the new joint working arrangement.
As part of the repayment of the loan, which will carry 8 per cent interest, the entire issued share capital of HEME will be transferred to Genel, which would then hold a 100% interest in the Miran production sharing contract and Miran joint operating agreement.