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(Arabian Oil and Gas) -- Genel
Energy, the company to be formed following the completion of Vallares's USD 2.1
billion reverse takeover of Turkey's GeneEnerji, will be looking to spend big on
Kurdish assets, according to ex-BP CEO Tony Hayward.
Hayward - who will become CEO of Genel once the takeover is complete -
told reporters in Instanbul yesterday that Kurdistan is ripe for mergers and
acquisitions activity, and Genel will be looking to apply part of Vallares's USD
2.2 billion cash pile to work.
The bold approach taken by Valares - and the clear appetite for their
model from investors - raises questions about whether investors prefer Kurdistan
to oil projects in the South, despite the legal and economic uncertainties
arising from the fractious relationship between Erbil and Baghdad.
Hayward said one third of the USD 2.2 billion cash will be spent on
consolidation, one third on “new focus” areas and the rest on accelerating the
developments of new discoveries. One focus for Genel will be to establish a
second exploration and production base in the region, a startegy that may mean
that Vallares's disclosed interest in Dana Gas may be continuing.
mrcplast.com
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