Genel is anticipated to spend approximately $60 million on the project by the end of 2020.

Chevron Corporation, a U.S. based oil & gas multinational, has reportedly entered into a partnership agreement with a British oil production company, Genel Energy, for the Kurdistan JV (joint venture).

As per genuine sources, the London-listed oil company, Genel Energy, will acquire Chevron’s stakes in the Qara Dagh and Sarta production sharing blocks in Iraq’s Kurdistan region. It will purchase 30 percent stake in Sarta, where Chevron executed successful appraisal drilling and will become the operator of Qara Dagh by acquiring 40 percent stake.

Chevron revealed in a recent statement that Genel’s participation will add significance to the joint venture and will help the company in progressing its activities in the region. It further claimed that Genel is likely to pay around 50 percent of the future development costs at the Sarta block until a certain production target is reached.

Murat Ozgul, the Chief Executive Officer at Genel, recently said that this agreement not only provides an exciting opportunity for appraisal at Qara Dagh, but also provides access into a phased development prospect with fundamental growth potential at Sarta.

Genel Energy said that with the average oil price at $45/b, the current low-cost oil assets must generate more than $100 million this new year, in free cash flow.

It has also been reported that Genel is anticipated to spend approximately $60 million on the project till 2020’s end. About two appraisal wells of Sarta achieved 7,500 b/d test production rates and will be expectedly converted into commercial production in the initial development phase. Reports further added that another well will be drilled in 2020 under the appraisal license of Qara Dagh. As per reliable reports, Chevron will hold 50 percent and 40 percent stakes in Sarta & Qara Dagh respectively, while the KRG (Kurdistan Regional Government) will hold the remaining 20 percent stakes.