Reuters reported that London listed oil explorer Genel Energy announced deals that will help it to diversify into the Mediterranean and North Africa building on its strategy to expand outside its core region of Kurdistan.

Genel said that it would acquire 75% of Mediterranean Oil & Gas's interests in an offshore Malta contract for up to USD 30 million with an additional agreement to assess and acquire further assets in Malta, Libya and Tunisia.

It also said that it would farm in to 60 percent and assume ownership of the Sidi Moussa block offshore Morocco for up to USD 50 million. Although the acquisitions are small, they mark the first foray for Genel into the region. The majority of its acreage is in the semi autonomous Kurdistan region of Iraq, and it also has assets in Somaliland and Cote d'Ivoire.

Genel was formed last year when Mr Tony Hayward former CEO BP and financier Nathaniel Rothschild's bid vehicle bought Turkey's Genel Enerji. Mr Hayward, now Genel CEO has said that the company wanted to diversify and that its Turkish background lent it a natural advantage in the North African region.

It splashed out around USD 450 million on part of Heritage Oil's stake in a gas discovery in Kurdistan. Thursday's deals were announced alongside Genel's results for the 6 months to end June. It ended the period with a net cash pile of USD 1.8 billion and said it had earmarked around USD 1 billion to buy further assets.

With revenues for the H1 of USD 123 million, it retained its guidance for full year sales of USD 250 million to USD 300 million. Average production of 40,000 barrels of oil per day was still expected though that could rise if it is able to continue exporting from Kurdistan throughout 2012.

Source - Reuters

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