Genel Energy, a British oil and gas exploration and production company, is expanding into Egypt through a $360 million all-cash acquisition of Capricorn Energy, a strategic move aimed at diversifying beyond its disruption-prone oil assets in Iraqi Kurdistan, as reported by Reuters.
Capricorn Energy is an oil and gas explorer, developer, and producer with operations in several locations across the world, including Egypt’s Western Desert.
Genel said in a statement that Capricorn’s Western Desert portfolio would add meaningful oil and gas output in Egypt, a market known for its well‑established regulatory framework, stable contracts, and attractive fiscal terms.
Capricorn had drawn takeover interest for months, notably from Cafani Group, which made several approaches and now faces a July 29 deadline to submit a formal bid after repeated extensions. Capricorn’s board, however, said it would unanimously recommend the Genel transaction, describing it as superior to other credible proposals, including those from Cafani.
Genel operates in Iraq’s Kurdistan region, where its core production comes from a 25% non‑operated stake in the Tawke field alongside Norway’s DNO. Over the years, the company has weathered repeated disruptions to exports through the Iraq–Turkey pipeline, stemming from disputes between Baghdad and the Kurdistan Regional Government. The recent Iran war has further heightened security risks in the area.
Against this backdrop, the takeover will transform Genel into a larger, more diversified producer, with output balanced evenly between Egypt and Iraqi Kurdistan, noted Reuters.
In May 2025, The Egyptian General Petroleum Corporation (EGPC) approved the consolidation of eight of Capricorn’s existing Egyptian concession agreements into a single integrated agreement.
The concessions, in which Capricorn together with Cheiron Oil and Gas Limited hold a 50% stake, are the Badr El Din (BED), Obaiyed, North Alam El Shawish, North Matruh, Sitra, BED 3, and BED 2 and BED 17 development concessions, along with the North Um Baraka exploration concession.
