UK-listed Genel Energy has closed a deal to acquire a stake in a pair of fields in the Kurdistan Region of Iraq from US supermajor Chevron, and the duo are now moving towards development.

Genel said on Thursday that the Kurdistan Regional Government (KRG) has approved the acquisition of stakes in the Sarta and Qara Dagh blocks.

As a result, under one part of the deal, Genel now has 30% equity in Sarta, with Chevron holding 50% and the KRG the remaining 20%.

A final investment decision relating to Sarta phase 1A development has now been taken, Genel said.

Work on Sarta will begin with two wells, recompleting the Sarta-2 well and placing the Sarta-3 well on production, both of which flowed approximately 7500 barrels per day on test.

In addition, the companies will start the construction of a central processing facility with a 20,000 bpd capacity.

“Another well is expected to follow within twelve months of first oil, and further production capacity will be added as the field is developed and production ramps up,” Genel said.

First oil is expected in 2020, with a total cost to Genel estimated at $60 million.

Meanwhile, Genel now also holds 40% equity in Qara Dagh and has taken over as operator, with Chevron holding 40% and the KRG the remaining 20%.

Work is under way on assessing the optimal location for the Qara Dagh-2 well, which is set to be drilled in 2020, Genel said.

The Qara Dagh-1 well was completed in 2011 and tested oil in two zones from the Shiranish formation.

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