Genel Energy is accelerating its expansion into Egypt after agreeing to acquire Capricorn Energy in an all-cash transaction valued at approximately $360 million, marking one of the latest strategic deals reshaping the Middle East and North Africa’s upstream energy sector.

The London-listed independent oil and gas producer said the acquisition will significantly expand its presence in Egypt’s Western Desert, adding high-quality producing assets while creating a larger regional energy company with stronger production, reserves and long-term growth potential.

Under the agreement, Capricorn shareholders will receive $4.74 per share, consisting of $3.75 in cash and a special dividend of $0.99 per share.

Production, cash flow and reserve growth

The combined business is expected to generate stronger operating cash flow from its existing production base while providing additional opportunities to grow proven and probable (2P) reserves through an expanded portfolio of producing and exploration assets.

Following completion of the transaction, the enlarged company is projected to hold 117 million barrels of oil equivalent (mmboe) in 2P reserves and produce approximately 41,003 barrels of oil per day (bopd) based on the December 2025 exit rate.

Production will be split almost evenly between Egypt and the Kurdistan Region of Iraq, reducing geographic concentration while strengthening operational resilience.

Genel’s board said a detailed review of Capricorn’s assets confirmed the acquisition would establish Egypt as a new strategic pillar of the company’s business, improving production diversity and supporting sustainable long-term growth.

Egypt becomes a core growth market

Genel Energy built its reputation in the Kurdistan Region of Iraq after signing the region’s first Production Sharing Contract in 2002. Over the past two decades, the company has invested approximately $3.5 billion in Kurdistan, supporting economic development and regional employment.

The company has recently repositioned its portfolio by exiting non-core markets while pursuing new opportunities across the Middle East. The Capricorn acquisition represents its most significant move into Egypt, one of Africa’s largest oil and gas producers.

Capricorn Energy, formerly known as Cairn Energy, operates a portfolio of producing oil and gas assets across Egypt’s Western Desert, including interests in Obaiyed, home to Egypt’s largest onshore gas field, and the Badr El Din (BED) concession complex.

The acquisition positions Genel to capitalize on Egypt’s growing energy sector while creating a larger independent producer with diversified assets, stronger cash generation and greater exposure to one of the region’s most attractive upstream investment markets.