As Kurdistan oil booms, deal-making accelerates

You are here: Home » Oil » Production & Exports » As Kurdistan oil booms, deal-making accelerates As Kurdistan oil booms, deal-making accelerates Workers at the Gulf Keystone Petroleum production facility at Shaikan in Iraq's Kurdistan region. (SEBASTIAN MEYER/Metrography/Iraq Oil Report) By Patrick Osgood, Ben Lando and Ben Van Heuvelen of Iraq Oil Report Published December 3, 2012 ERBIL - A decade after Iraqi Kurdish leaders signed their first oil contract, the semi-autonomous Kurdistan Regional Government (KRG) is poised to play host to what could be the industry's biggest asset bazaar ever. In the latest developments, announced late Friday night, Abu Dhabi's national oil company TAQA bought a stake in the Atrush exploration block from American independent Aspect Energy. TAQA also sold its 20 percent share of the KRG-focused Canadian firm Western Zagros. There is more deal... ============================= UPDATE 1-Abu Dhabi's TAQA buys 53.2 pct stake in Iraqi Kurdish oil block Sat, Dec 01 01:09 AM EST ABU DHABI, Dec 1 (Reuters) - Abu Dhabi National Energy Co (TAQA) has bought a 53.2 percent operating interest in an oil block in Iraqi Kurdistan from General Exploration Partners (GEP), the company said in a statement. GEP is a joint venture between privately-held Aspect Energy, which owns a 66.5 percent interest, and a subsidiary of Canadian group ShaMaran Petroleum. "This entry into a pure exploration play demonstrates how TAQA is leveraging its experience as an operator of complex oil and gas assets," said TAQA CEO Carl Sheldon in the statement. Earlier this year, TAQA bought a 50 percent stake in Kurdish power plant Chamchamal. TAQA said on Friday it had sold its 19.9 percent share in WesternZagros Resources, which has contracts for two blocks in the Iraqi Kurdish region. GEP, which has an 80 percent stake in the Atrush block in Kurdistan, said in September it had found a combined flow rate of 42,200 barrels of oil per day. The other 20 percent of the block is held by a subsidiary of Marathon Oil Corp. An autonomous region since 1991, Iraqi Kurdistan is often touted as one of the final frontiers for onshore oil exploration and has signed deals with foreign majors such as Exxon Mobil , Chevron and Total. ======= UPDATE 1-TAQA, GIB to price bonds in late-year Gulf flurry Tue, Dec 04 04:38 AM EST * Abu Dhabi's TAQA and Bahrain-based GIB to issue this wk * TAQA eyeing 2-tranche deal, in full expansion mode * GIB plans 5-yr bond, size to be determined * Borrowers seek final issuance windows before yr-end (Adds detail, background) DUBAI, Dec 4 (Reuters) - Abu Dhabi National Energy Co (TAQA) is preparing to price a two-tranche dollar-denominated bond issue, maturing 2018 and 2023, after roadshows conclude on Tuesday, arranging banks said. TAQA, which is 75-percent owned by the Abu Dhabi government, joins Gulf International Bank in pricing new issues as regional borrowers line up to get deals away before investors close books for the year. TAQA, which is buying a number of BP's North Sea assets, said last week it had hired banks to arrange investor meetings ahead of a benchmark-sized issue, typically at least $500 million. TAQA is a frequent bond issuer and familiar to international investors, in part due to its global profile. At the end of the third quarter, it had a cash position of 3.5 billion dirhams ($950 million) as well as 14.8 billion dirhams ($4 billion) worth of unused credit facilities. The company has $1.75 billion in bond maturities next year. It last tapped markets for a dollar-denominated issue last December with a $1.5 billion two-tranche bond to refinance debt. TAQA announced last week that it bought a 53.2-percent operating interest in an oil block in Iraqi Kurdistan from General Exploration Partners and earlier this year bought a 50 percent stake in Kurdish power plant Chamchamal. BNP Paribas, Citigroup, HSBC Holdings , National Bank of Abu Dhabi and Standard Chartered are mandated to arrange the deal. SAUDI INTEREST SEEN FOR GIB Bahrain-based Gulf International Bank is a less familiar name in the global fixed income community, although it too benefits from strong state-ownership. GIB released early price talk for a five-year bond on Tuesday at a spread of 165 to 175 basis points over midswaps. The issue size is yet to be determined, and it will be GIB's first dollar deal in seven years, according to IFR Markets. GIB is 97.2-percent owned by the Saudi government, a level of risk international investors are likely to be more comfortable with. "GIB will see more Saudi interest, but interest for TAQA will be global," a regional fixed income trader said, declining to be identified. Earlier this year, GIB conducted investor meetings in Malaysia for a possible Islamic bond, or sukuk, under a 3.5 billion ringgit programme but no issue has yet materialised. Other shareholders are Gulf sovereign wealth funds including Kuwait Investment Authority and Qatar Holding. GIB picked itself, JP Morgan Chase Inc, National Bank of Abu Dhabi, Barclays Plc, Standard Chartered Plc and Societe Generale to arrange the deal. The Kingdom of Morocco also concludes roadshows this week for a debut dollar issue. Last week, International Petroleum Investment Co (IPIC) priced a $2.9 billion equivalent dual-currency bond. Gulf Investment Corp also priced a $500 million five-year bond in late November, its first dollar deal since 2005. (Reporting by Mala Pancholia and Rachna Uppal; Editing by Amran Abocar)