British oil and gas firm Genel Energy is pushing into Egypt through a $360 million all-cash takeover of Capricorn Energy, a move aimed at diversifying away from its exposure to the often-disrupted oil assets it holds in Iraqi Kurdistan.
Capricorn brings a Western Desert portfolio that Genel says will add meaningful output in a market known for a stable regulatory framework and attractive fiscal terms. The deal will leave Genel with production split more evenly between Egypt and Kurdistan, where its output has repeatedly been hit by export disruptions tied to disputes between Baghdad and the Kurdistan Regional Government, with regional security risks compounded further by recent conflict involving Iran.
Capricorn had drawn takeover interest for months, including from Cafani Group, which now faces a July 29 deadline to table a formal bid after several extensions. Capricorn’s board has said it will unanimously back the Genel offer, calling it superior to other proposals on the table.
Genel’s core Kurdistan production comes from a 25 percent non-operated stake in the Tawke field alongside Norway’s DNO. In Egypt, Capricorn — together with partner Cheiron Oil and Gas — holds a 50 percent stake across several Western Desert concessions, including Badr El Din, Obaiyed, North Alam El Shawish, North Matruh, Sitra and others, following a consolidation of the acreage into a single agreement approved by Egyptian authorities last year.
Source: (egyptoil-gas.com)