Former BP boss earns £12m from Iraqi oil venture

January 21, 2012 at 11:36 pm | Posted in Turkmens | Leave a comment
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Former BP boss earns £12m from Iraqi oil venture

Tony Hayward pockets first tranche of payments from Kurdistan oil venture with Genel Energy,             Friday 20 January 2012

BP Chief Executive Tony Hayward

Former BP chief Tony Hayward. Photograph: Suzanne Plunkett/Reuters

Former BP boss, Tony Hayward will pocket more than £12m in a first tranche of payouts less

than a year after he set up his own company and then bet on Kurdistan being the next big province

for the oil industry.

Hayward who left his old employers with a £10m pension pot after the Gulf of Mexico

blowout,  exercised his rights to a 6.67% stake in the Genel Energy business along with

 his partners Nat Rothschild and two other executives. The four Genel backers are entitled

to a windfall nudging £160m as they swap their “founder” shares in the Vallares investment

vehicle they established in return for ordinary shares in Genel. Hayward and the other

founders of Vallares will not be able to sell their shares until 21 November under a

lock-in arrangement.

The oil investors who had poured £100m of their money into the business could

win a further payout.

They still control ‘C’ class shares that entitle them to 15% of any gains should

Genel shares rise above a specified price.

A statement from Genel pointed out the initial investment was “risk capital”

that left them facing a loss of up to £20m had they not completed a successful

acquisition within a specified time frame.

Vallares is still sitting on nearly $2bn (£1.6bn) raised in an initial flotation last

year because the cash was not required to merge with the Turkish-based Genel,

the largest oil producer in the Kurdistan region of Iraq. Genel, with stakes in six

oilfields in northern Iraq says those interests amount to a potential 356m barrels

of proven oil reserves. Genel shares rose 1.2%to 855p still less than the £10 float price.

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