Genel Energy Plans Acquisitions in Iraqi Kurdistan

Tony Hayward (pictured), the Chief Executive Officer of Genel Energy Plc, a group formed via a merger of Vallares Plc and Turkey's Genel Enerji, said he plans acquisitions in Iraqi Kurdistan.

Reuters reports that the former boss of BP told reporters in Istanbul that the company plans to make the acquisitions with its $2.2 billion in cash.

"Consolidation is going to take place in the region. There are 41 different entities operating in the Kurdistan region today," Hayward said.

"Time is right for consolidation in the Kurdistan region. You should expect to see some action around the place."

Hayward said one third of the $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.

Vallares, an investment vehicle set up by Hayward, financier Nat Rothschild and banker Julian Metherell, is buying Genel in a deal that creates a Kurdistan-focused group worth $4 billion.

The Chairman of Genel Energy, Mehmet Sepil, said Genel had invested a total of $600 million in the Kurdish region.

The company will look into other areas in the Middle East and North Africa for expansion, Hayward said.

The newly-merged group will seek a premium listing on the London Stock Exchange in early 2012, and would likely be big enough to enter the FTSE 100 index of blue-chip London-listed companies.

(Source: Reuters)

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