Iraqi-focused Genel Energy agreed with Chevron to acquire stakes in Kurdistan’s Sarta and Qara Dagh blocks, Pipeline Oil and Gas Magazine reported.

“The agreement provides access to a phased development opportunity with significant growth potential at Sarta, and an exciting appraisal opportunity at Qara Dagh,” Murat Özgül, Genel CEO, said.

Genel will acquire 30% equity in Sarta licence through paying a 50% share of the field’s development costs. Meanwhile, Chevron will own 50% interest and the Kurdistan Regional Government will acquire the remaining 20%.

Sarta-3 well was successfully tested and completed in Q2 2018. Both Sarta-2 and Sarta-3 wells will be tested individually at production rates of about 7,500 barrels of oil per day (b/d).

Moreover, Genel will acquire 40% equity of the Qara Dagh licence and be the operator through the carry management. Chevron will own 40% share of the block and the Kurdistan Regional Government will hold the remaining 20%.

The drilling campaign at Qara Dagh-1 well was completed in 2011. Qara Dagh-2 well is planned to be drilled in 2020.

Closing the acquisition is subjected to an approval from the Kurdistan Regional Government.