Draw Media
TotalEnergies has completed the divestment of its 18% interest in the onshore Sarsang oil field in the Kurdistan region of Iraq, to ShaMaran Petroleum, for a firm consideration of $ 155 million.
ShaMaran’s president Adel Chaouch called the acquisition a “momentous day for ShaMaran.”
“Dr. Adel Chaouch, President and Chief Executive Officer of ShaMaran stated, “This is a momentous day for ShaMaran as with this acquisition (effective date of January 1, 2021) we have transformed ShaMaran from being a single asset company into one owning a portfolio of stakes in three world class producing oil fields (Atrush, Swara Tika and East Swara Tika) in Kurdistan with improved oil qualities and complementary production horizons.”
TotalEnergies share of production was around 3,5000 barrels per day in 2021, according to numbers published by the company.
“The Sarsang field, discovered in 2011, is operated by HKN (62%), with KRG owning a 20% interest. TotalEnergies' share of production was around 3,500 barrels per day in 2021.”
In Iraq, TotalEnergies started its activities in the 1920s with the discovery of Kirkuk field. The company currently has a 22.5% interest in the Halfaya oil field. TotalEnergies’ production in Iraq is about 14 000 boe per day in 2021.
In September 2021, TotalEnergies signed major multi-energy agreements in Iraq covering the construction of a new gas network and treatment units, the construction of a large-scale seawater treatment unit and the construction of a 1 GW photovoltaic power plant.
A February ruling by Iraq’s top court against the Kurdistan Region’s authority to administer its energy resources has cast insecurity on the legitimacy of international oil companies (IOCs) operating in the Region.
The court found the Region’s oil and gas law to be “unconstitutional,” therefore striking down the legal basis for the independence of the Region’s oil and gas sector.