Page 8 - MEOG Week 49

MEOG FINANCE & INVESTMENT MEOG

Total looking for Sarsang buyer

KURDISTAN REPORTS emerged last week that French Following the transfer of ownership, HKN
super-major Total is looking for a buyer for its now owns and operates all three production
18% stake in the Sarsang production-sharing facilities on the Sarsang block. It said that drill-
contract (PSC) in the Kurdistan Region of north- ing and completion work at the Swara Tika (ST)
ern Iraq. B2 well had been carried out, with oil flowing at
Speaking to Bloomberg, sources with knowl- 6,000 bpd, with ST-A1 expected to add a further
edge of proceedings said that the deal could be 2,000 bpd.
worth around $500mn to Total, which has raised Production from both Sarsang and the Ain
$1.1bn by divesting non-core assets during the Sifni block is trucked to facilities at the Tawke
first nine months of the year. oilfield facilities for export by pipeline to the
Total is reported to have hired Jefferies Group Turkish port of Ceyhan. HKN is reported to be
to market the 420-square km asset, which has constructing a pipeline to tie into the Kurdistan
been operated by HKN Energy, a subsidiary of export pipeline.
Dallas-based Hillwood International Energy, While HKN has high hopes for the asset, esti-
since 2007. HKN owns a stake of 62%, with mating production of 50,000+ bpd in 2021/22
Total’s share held by its TEPKRI Sarsang subsid- and longer-term potential of more than 100,000
iary, with the Kurdistan Regional Government bpd, it was never a key asset for Total, which
(KRG) holding its customary carried 20% work- acquired its stake following its purchase of
ing interest. The Sarsang development area con- Maersk Oil in 2017.
tains the producing Swara Tika and East Swara Meanwhile, as the company seeks to agree
Tika fields. large gas deals with the federal government in
During its first-half results, HKN said that it Baghdad, non-core asset ownership in the Kurd-
had identified 380mn stock tank barrels of gross ish north is likely to prove more of a hindrance
2P reserves in Triassic reservoirs in Sarsang, with than a help.
gross production flowing at around 25,000 bpd Talks are believed to be ongoing, with no
at mid-year. decision yet having been taken on the sale.™

P8 www. NEWSBASE .com Week 49 09•December•2020