Shafaq News- London

Norwegian oil company DNO offered about £202 million ($271.8 million) on July 28 to acquire British-listed Genel Energy's stake in the Tawke oil field in the Kurdistan Region of Iraq (KRI), but the proposal was rejected, the company said on Friday.

According to a statement, the bid covered Genel's stake in the Tawke field and included 69 pence in cash per share, representing a premium of more than 38% over the company's previous closing share price.

Oil companies operating in the KRI have faced difficult operating conditions in recent years, including repeated suspensions of production and exports due to regional geopolitical tensions.

Reuters reported today that Genel Energy holds a 25% interest in the production-sharing contract for the Tawke oil field, which is operated by DNO. Following news of the offer, Genel Energy's shares rose about 14% in London trading to 57 pence by 07:25 GMT, recovering most of the company's 17% year-to-date losses.

Merger and acquisition activity among Middle East-focused oil companies has accelerated following the sharp rise in oil prices since the outbreak of the Iran war, encouraging regional energy firms to pursue acquisitions.

In May, DNO said it had resumed limited operations at the Tawke and Peshkabir oil fields after suspending production for six weeks following the outbreak of the Iran war. The company also restarted work on existing wells and resumed an eight-well drilling campaign to prepare both fields for higher production once security and market conditions improve.