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STOCKS NEWS EUROPE-Kurdistan-focused oil cos boosted by pipeline news

Reuters - UK Focus

(Repeats to additional subscribers with no changes to the text)

The flow of oil through a new pipeline to transport oil from the Kurdistan region of Iraq to Turkey boosts shares in companies with fields there on expectations that those producers will be able to sell more crude.

Shares in London-listed Genel Energy (Other OTC: GEGYF - news) and Gulf Keystone (LSE: GKP.L - news) , whose main activities are in Kurdistan, climb 4.2 percent and 2.5 percent respectively. Norway's DNO is up 1.9 percent and Hungary's MOL is up 0.7 percent. Two British companies with smaller exposure to Kurdistan, Petroceltic and Afren (LSE: AFR.L - news) , are also trading higher.

The Kurdistan Regional Government (KRG) said on Wednesday that the first crude has started to flow through the new pipeline across Turkey and exports are expected to begin at the end of this month and will ramp up in February and March.

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"Overall, (the news is) supportive for Kurdistan-focused Genel and provides confidence that the prospect of pipeline exports are become an increasing reality," Deutsche Bank (Xetra: DBK.DE - news) say in a note.

Kurdistan's bid to export oil and gas independently from Baghdad has infuriated officials in the Iraqi capital, which claims sole authority to manage Iraqi oil.

For the companies with oil in Kurdistan, the pipeline means they can export and sell more oil as current sales are limited by trucking.

"Government confirmation of the expected ramp-up in piped exports will be viewed as a positive today," Numis analyst Sanjeev Bahl says, adding that Genel and DNO would be the main beneficiaries given that their fields were named by the KRG as suppliers to the pipeline.

Analysts at HSBC also upgrade Genel to overweight on Thursday, giving it an additional boost, while they cut their rating on DNO to underweight.

Separately, Gulf Keystone says on Thursday it has started to export oil via truck to Turkey, something Mirabaud analysts call positive.

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Reuters messaging rm://sarah.young.thomsonreuters.com@reuters.net