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Landmark deal for Afren underlines shifting sentiment on Kurdistan

Landmark deal for Afren underlines shifting sentiment on Kurdistan

Report summary

The acquisition of two PSCs in Iraqi Kurdistan is a bold and potentially transformational move for Afren. The licences contain two undeveloped oil discoveries and hold significant exploration potential. The purchase price is US$588 million. At an unrisked valuation, these interests might be expected to fetch in excess of US$2.5 billion on the M&A market. The volumes are equally impressive: net 2P contingent reserves of 890 mmbbl and expected peak production in excess of 75,000 b/d ...

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  • Landmark deal for Afren underlines shifting sentiment on Kurdistan PDF - 802.94 KB 7 Pages, 4 Tables, 3 Figures


The upstream oil and gas industry conducts activities against a backdrop of growing energy and environmental challenges. Political instabilities, international conflicts and government and environmental regulation have all impacted the production process.

This has forced companies to re-examine their corporate strategy, moving away from high-risk exploratory drilling to lower-risk exploration in mature basins as they search for increased returns.

This Upstream Oil and Gas Deal Insight report provides an in-depth analysis of this deal. You will also find information about upstream assets and the strategic rationale behind the deal.

For investors and businesses, this deal insight report provides an understanding of the effect this deal will have on the market, including oil and gas pricing and assumptions. Use it to keep up to date with deal announcements, gain expert insights and analyse potential developments that might affect your strategy.

Wood Mackenzie goes beyond company-reported data and announcements to give you an independent and informed view. Our unique valuation metrics are underpinned by our deep understanding of upstream assets and companies. We help you objectively benchmark and evaluate asset and corporate deals so you can compare deal economics around the world.

  • Executive summary
  • Transaction details
  • Upstream assets
    • Barda Rash PSC
    • Ain Sifni PSC
  • Deal analysis
    • Pricing sensitivities related to exports represent the single biggest risk to our valuation
    • Organic uncertainties are substantial
  • Strategic rationale
    • Afren
    • Komet and KRG
  • Oil & gas pricing and assumptions

In this report there are 7 tables or charts, including:

  • Executive summary
  • Transaction details
  • Upstream assets
    • Upstream assets: Table 1
    • Kurdistan (Barda Rash and Ain Sifni highlighted)
  • Deal analysis
    • Deal analysis: Table 1
    • Wood Mackenzie NPV under low oil price and high discount rate sensitivities
  • Strategic rationale
    • Afren production - Wood Mackenzie base forecast plus Iraq potential
  • Oil & gas pricing and assumptions
    • Oil & gas pricing and assumptions: Table 1
    • Oil & gas pricing and assumptions: Table 2
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