UK-listed oil company Genel Energy has increased its interest in the Miran commercial gas exploration block in the Kurdistan Region of Iraq, paying Heritage Energy Middle East (HEME) $156 million for a 26 per cent stake.

The deal gives Genel a controlling interest in the block, taking its total share to 51 per cent. HEME retains the other 49 per cent. Genel will operate the block in conjunction with HEME.

Genel plans to exploit Miran to build a material gas business to complement its existing oil producing assets. It will primarily use its interest in Miran to export gas to Turkey.

According to a statement on the Nasdaq, Genel will also provide HEME’s parent company, Heritage Oil, with a bilateral loan of $294m, secured on Heritage’s shares in HEME in addition to HEME’s 49 per cent interest in the Miran block.

“This acquisition represents an excellent opportunity to extend our interest in, and assume joint operatorship of, a commercial gas discovery and high-quality asset in the Kurdistan region of Iraq,” says Tony Hayward, chief executive officer of Genel Energy. “Following our recent acquisition of a 44 per cent interest in Bina Bawi, it will further enhance our position as the leading oil and gas company in Kurdistan.”

In early August Genel increased its stake in the Bina Bawi exploration block in the Kurdistan region of Iraq to 44 per cent, just days after acquiring its first interest in the block. The company agreed to acquire an additional 21 per cent interest in the block from the US’ Hawler Energy for $240m, according to a 6 August statement.