Maersk unit picks up stake in Iraqi blocks from Repsol

January 14
3:05 AM 2014

Maersk Oil, a unit of Danish oil and shipping magnate AP Moller-Maersk, has gained approval from the Kurdistan Regional Government (KRG) to acquire a total of 40% stakes in two exploration blocks in Iraq. The said stakes are presently held by Repsol Oriente Medio, according to Upstream Online.

Under the terms of the deal, Repsol will continue to conduct its exploration and own 40% stakes in the said blocks. Reuters said the KRG will own the remaining 20% stakes per block. The financial terms of the deal were not disclosed, the report said.

The two blocks, Qala Dze and Piramagrun, are in the east of Erbil, the Kurdistan region's capital, the report added.

Maersk chief executive Jakob Thomasen reportedly said: "Being present and active in one of the world's most promising and prolific exploration basins is a fundamental part of Maersk Oil's strategy. We expect our position in Kurdistan region of Iraq to help us sustain the target production level beyond 2020."

According to the Danish firm, it will spend between $3 billion and $5 billion every year on developing projects, Upstream Online reported.

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