Turkey-based Genel Energy has agreed to acquire Austrian oil group OMV’s stake in the Bina Bawi gas field in the Kurdish region of northern Iraq.

Subject to government approval, Genel will buy the 36 per cent interest for $5m plus a contingent payment of $70m once gas production exceeds an agreed volume from the Miran and Bina Bawi fields.

A further payment of $75m is scheduled for two years after the date of the second payment.

The Kurdistan Regional Government (KRG) has agreed to offset $25m against payments owed to Genel for past expenses incurred on the Miran field.

Erbil is looking to increase payments to international oil companies (IOCs) over the coming months, having fallen behind due to budgetary constraints. A payment of $30m was approved for Genel in September.

Genel has stakes in the Taq Taq and Tawke oil fields, as well as in the gas assets of Miran, Dohuk and Bina Bawi.

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