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September 16, 2022

TotalEnergies closes divestment of 18% interest in Iraq’s Sarsang oil field

ShaMaran Petroleum agreed to buy the stake in the licence in July 2021.

TotalEnergies has closed the sale of its 18% non-operated interest in Iraq’s Sarsang oil field to ShaMaran Petroleum for a firm consideration of $155m.

In July 2021, ShaMaran Petroleum agreed to buy an 18% stake in the Sarsang licence from TotalEnergies.

A company listed in Canada and Sweden, ShaMaran is focused on oil exploration and development in the Kurdistan region of Iraq.

The Sarsang oil field is an onshore oil field in the Kurdistan region.

A further contingent consideration of $15m is payable in the future based on production and oil prices. 

Discovered in 2011, the field is operated by HKN.

HKN holds a 62% stake in the field while KRG owns a 20% interest.

The share of production of TotalEnergies was approximately 3,500 barrels per day last year.

TotalEnergies began its activities in Iraq in the 1920s, with the discovery of the Kirkuk field.

The company currently holds a 22.5% stake in the Halfaya oil field.

The company’s production in Iraq was approximately 14,000 barrels of oil equivalent per day last year.

TotalEnergies signed major multi-energy agreements in Iraq in September 2021 for the construction of a new gas network and treatment units, a large-scale seawater treatment unit, and a 1GW photovoltaic power plant.

In a separate development, the South African petroleum regulator said that TotalEnergies’s 11B/12B offshore gas field could make a direct contribution of at least $457m annually to the country’s finances, reported Reuters.

At an oil conference, the Petroleum Agency of South Africa (PASA) chief executive Phindile Masangane said: “That is not just the overall GDP contribution but is the direct fiscal contribution from the royalties, as well as the primary taxes.”

TotalEnergies filed its production licence application for Block 11B/12B on 5 September.

The company serves as the operator in Block 11B/12B, with joint venture partners including QatarEnergy, Canadian Natural Resources, and consortium Main Street.

Development of the first phase of the company’s deep-water field could cost up to an estimated $2.55bn (R45bn), with first gas production expected in 2027.

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