Heritage Oil announces sale of Kurdistan asset

21 August, 2012 The company will sell its 26 per cent interest to Genel Energy.

Heritage Oil has announced that its subsidiary, Heritage Energy Middle East (HEME), will sell its interest in an Iraqi prospect to Genel Energy.

The company revealed that it plans to give up its 26 per cent stake in the production sharing contract in the Mirian Block, situated in the Kurdistan region of the Middle Eastern country, to the energy business.

Officials have noted that the whole interest held by Heritage is valued at $450 million (£285.4 million), which Genel will pay on August 22nd, when the deal is expected to be completed by both parties.

Tony Buckingham, chief executive of Heritage, said: "We believe this sale and loan financing crystallises significant value for shareholders, demonstrating our ability to invest in and monetise assets at an appropriate stage."

The move comes after Heritage announced in July that it would ramping up production in Nigeria as revenue production in its OML 30 prospect increased by 58 per cent.<br/><br/>© Adfero Ltd