Genel reached agreement to acquire stakes in the Chevron operated Sarta block, in the Kurdistan Region of Iraq, in January 2019. Production began in November 2020.

Genel acquired 30% equity in the Sarta licence by paying a 50% share of ongoing field development costs until a specific production target is reached. Chevron retain a 50% interest in the Sarta licence and the Kurdistan Regional Government hold the remaining 20%.

Genel’s focus was on making ongoing production from Sarta profitable. Given the investment required to achieve this, and the uncertainty over a resumption of payments, Genel has informed the Ministry of Natural Resources of its intention to surrender the asset and thereby terminate the Sarta PSC.