Hayward to head up New Genel Energy

Vallares, the investment vehicle led Tony Hayward has  announced  a deal to buy Genel Energy International, the biggest oil producer in Iraq's autonomous Kurdistan region, for $2.1 billion. Vallares said it would issue new shares worth $2.1 billion  to create a new group, Genel Energy PLC. Vallares and Genel will each have a 50-percent stake in the new company. Hayward will be the chief executive.

 Iraq's Kurdistan government was expected to approve the deal this month, Vallares said in a statement. "The acquisition will create a vehicle with exposure to the highly prospective Kurdistan hydrocarbon region," Vallares said. "The Kurdistan Region of Iraq represents one of the last great frontiers in oil and gas. The relative security and stability of the Kurdistan Region of Iraq has allowed it to focus on procuring investment in the oil sector," it added.

Genel chief executive Mehmet Sepil said: "The scale of recent hydrocarbon discoveries in the Kurdistan Region of Iraq has been significant and I think this trend will continue." He added that the tie-up gives Genel "an internationally listed, well-capitalised and agile company which already has deep experience, good relationships and first-class assets in the region." Genel Energy produces 41,000 barrels of oil equivalent a day in Iraq's Kurdistan region but this is set to more than double to 90,000 barrels by 2013, the statement said.

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