Genel Energy sells interest in Iraq project

Oil and gas group Genel Energy has completed the sale of a 20% stake in the Chia Surkh project in Iraq to Turkish sector peer Petoil.

In a statement released on Thursday, the London-listed company said Petoil will cover the costs of the acquisition by utilising Genel’ share of the costs associated with the Chia Surkh-12 appraisal well, which is expected to begin drilling operations early next year.

Upon completion of the acquisition, Genel will receive a $10m security deposit from Petoil, while the former will retain a 40% interest in the licence following the sale, with Petoil holding a 40% stake and the Kurdistan regional government retaining the remaining 20% stake.

Genel shares were down 4% to 258.25p at 1558 GMT.