Genel Energy to claim Bina Bawi field

London’s Genel Energy announced Tuesday that it has signed an agreement with Austria’s OMV to takeover its 36 percent stake in the Bina Bawi field, located in the Kurdistan Region of Iraq.

The company has agreed to a $5-million upfront payment, followed by $70 million in contingent future payments. Payments will be made on the condition that the Miran and Bina Bawi fields produce at agreed threshold volumes. A further contingent payment of $75 million will be paid two years following the date of the second payment.

The deal is contingent on approval from the Kurdistan Regional Government, and once approved, an offset of $25 million owed to the company will be made.

The Bina Bawi field is a large project, estimated to hold between 113 bcm (4 tcf) and 340 bcm (12 tcf) of gas. Combined with Genel’s 75 percent-owned Miran field, these assets are expected to generate significant revenues.

UK investment banking and institutional broking business, VSA Capital reported that Genel will now be able to advance development drilling at Bina Bawi field, which is slated for 2016, and that first gas is scheduled for next year.

“The first gas from Bina Bawi is expected for 2016 and will target domestic use in the first place then exports should start in 2018 mainly to Turkey,” the broker said.

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