TotalEnergies divests shares in Sarsang oilfield in KRI

TotalEnergies has sold its 18% share in the onshore Sarsang oilfield in the Kurdistan Region of Iraq to Canadian independent ShaMaran Petroleum Corp. for USD 155 million, the French super-major announced on Thursday.

According to the deal first announced in July 2021, an additional USD 15 million is payable depending on production and oil prices.

Discovered in 2011, the Sarsang oilfield is operated by Texas-based E&P entity HNK with a 62% stake. The remaining 20% interest is owned by the Kurdistan Region of Iraq Government.

In 2021, TotalEnergies’ share of production in the field was around 3,500 bopd.

“We have transformed ShaMaran from being a single asset company into one owning a portfolio of stakes in three world class producing oilfields (Atrush, Swara Tika and East Swara Tika) in Kurdistan with improved oil qualities and complementary production horizons,” said Adel Chaouch, president and CEO of ShaMaran Petroleum Corp.

“Based on the guidance from the operator of Sarsang, net production to ShaMaran will more than double on a pro-forma basis, positioning ShaMaran among the top five international oil companies in Kurdistan on a net production basis.”