KRG approves Sarsang development

US oil company HKN Energy announced on Monday that it received formal approval from the Kurdistan Regional Government (KRG) to develop the Sarsang block, a signal of improved relations between the two parties.

In April 2013, the KRG ordered HKN to cease operations on the block because of a labour dispute. The KRG served the company another stop order in October that year after unsatisfactory performance in the block.

Sarsang is estimated to hold 1 billion barrels of recoverable oil reserves. The development plan schedules to increase production from the licence to 50,000 barrels of oil per day, which will put the region’s daily output at 595,500 barrels per day.

HKN, which has operated the licence since 2007, holds a 42-percent interest in the Sarsang licence with Marathon Oil KDV (18 percent) and Maersk Oil Kurdistan (20 percent), with the remaining 20-percent belonging to the Kurdistan Regional Government.

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