Genel Energy has agreed to acquire a 26% stake in the Kurdistan’s giant Miran field discovery from London-listed Heritage Oil for US $450 million.

Genel has agreed to pay Heritage $156 million for a 26% stake in the joint operating agreement covering the development of the field, and will provide another $294 million 18-month loan to Heritage. The deal is due to complete next week.

Early development of Miran is due next year and a full field development in 2015.

Conceptual engineering design is for early production of between 80 and 180 Mmcf/d of gas for local markets commencing in 2013. Heritage says this will be followed by appraisal and a full development producing 560 to 750 Mmcf/d in 2015, for gas export via a 320 kilometre (200 mile) pipeline to the Iraq/Turkey border, partly in parallel to a planned Kurdistan Iraq Crude Export (KICE) on which construction is due to start this year.

Oil and condensate production from Miran at rates between 5,000 and 12,000 b/d are to  be trucked to Taq Taq for entry to the KICE pipeline. Another 70 km (43 mile) oil and condensate pipeline tied into KICE is also planned as part of the full development producing between 37,000 and 50,000 b/d.

Heritage says it will use the proceeds of the sale to finance the $850 m purchase of a 45% stake in OML 30 in Nigeria – which Heritage first signalled in June this year – and to finance other exploration.