Genel Energy group sees Norway’s DNO as a “natural partner” as it seeks to acquire assets, but the company is not in detailed talks with anyone as it completes its own merger, a Genel executive said. Genel Energy, formed by the combination of Vallares Plc and Turkey’s Genel Enerji, has made no secret of its plans to make acquisitions with its $2.2 billion in cash.
“DNO is our natural partner so it makes a lot of sense if we can take them into Genel,” Mehmet Sepil, CEO of Genel Enerji, told Reuters on the sidelines of an oil and gas conference in Arbil, the capital of Iraqi Kurdistan.
Former BP chief executive Tony Hayward said earlier on Sunday that he expected the Genel merger to be completed around Nov. 21.
Sepil said he would remain with the new company but would not be involved in the day-to-day management. “We have to finalise this merger process,” Sepil said. “We are interested in a few companies, (but there are) no detailed talks at this point.”
“I’m sure in the next few months you’ll see a lot of announcements coming from us,” he said.
Hayward told a Norwegian newspaper in late October he was interested in buying DNO and its Kurdish oil licences. DNO chief executive Helge Eide said last week that the company was ready to pursue its own acquisitions as it integrates the Gulf assets of Dubai-based RAK Petroleum. DNO is producing 50,000 barrels per day of crude at its Tawke field in Iraq’s northern Kurdish region and will boost output capacity to 100,000 bpd next year, Eide told Reuters at the conference.
DNO’s stock surged 20 percent on reports that Exxon Mobil had completed a deal with the Kurdistan Regional Government for six exploration blocs. A KRG official confirmed the Exxon deal.