The Sky Leak
Exclusive: Hayward Eyes New Iraq Deal
The oil and gas company headed by Tony Hayward, the former BP chief executive, is in detailed talks about a deal that would expand its presence in Iraq's vast energy industry, I have learned.
Genel Energy is close to sealing an agreement to acquire an additional 40 per cent stake in a major oil-field controlled by Longford Energy, a Canada-listed independent exploration and production company. A deal, which is likely to cost Genel tens of millions of pounds, could be announced before Christmas, I'm told.
Longford's principal asset is the Chia Surkh block in the Kurdistan region of Iraq, which has some of the world's largest untapped oil reserves. Genel already owns 20 per cent of the field, and the new transaction will hand it control of the asset.
The acquisition would be the second since Hayward listed Vallares, a cash shell, on the London Stock Exchange, earlier this year. In September, Genel was reversed into Vallares in a deal worth about $2bn, since when Hayward has promised to identify further takeover opportunities, both in Kurdistan and elsewhere.
Genel declined to comment this evening.
PS: I'm away from the office for the last couple of weeks of 2011 but I'll be updating this blog further if I pick up news in the meantime.