Home
British oil company make $588m Kurdistan aquisition
28/07/2011 10:23
Erbil, July 28 (AKnews) – British oil company, Afren, is making moves into Iraq with a US$588m purchase of fields in Kurdistan, the Daily Telegraph reports.
Afren is buying up stakes in the Ain Sifni and Barda Rash fields from the Kurdistan regional government (KRG) and Komet Group. The purchase equates to 1bn barrels of reserves.
The company has only previously operated in Nigeria, this is its first acquisition outside this area of expertise.
Afren believes that it will be extracting 75,000 barrels of light oil per day from Barda Rash alone within the next five years.
The company will raise money for the purchase through a placing of 83.7m shares, though it declined to name the price at which it is offering shares to investors.
Kurdistan has a massive amount of untapped oil wealth. The oil majors have tended to stay away because of the tense relationship between the federal government and the KRG, that resulted in oil production suspended for years until just this March. This means the door is open for smaller operators to step in and reap the rewards.
[You must be registered and logged in to see this link.]
28/07/2011 10:23
Erbil, July 28 (AKnews) – British oil company, Afren, is making moves into Iraq with a US$588m purchase of fields in Kurdistan, the Daily Telegraph reports.
Afren is buying up stakes in the Ain Sifni and Barda Rash fields from the Kurdistan regional government (KRG) and Komet Group. The purchase equates to 1bn barrels of reserves.
The company has only previously operated in Nigeria, this is its first acquisition outside this area of expertise.
Afren believes that it will be extracting 75,000 barrels of light oil per day from Barda Rash alone within the next five years.
The company will raise money for the purchase through a placing of 83.7m shares, though it declined to name the price at which it is offering shares to investors.
Kurdistan has a massive amount of untapped oil wealth. The oil majors have tended to stay away because of the tense relationship between the federal government and the KRG, that resulted in oil production suspended for years until just this March. This means the door is open for smaller operators to step in and reap the rewards.
[You must be registered and logged in to see this link.]
