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ShaMaran Petroleum Corp., a Canadian independent oil and gas company focused on the Kurdistan region of Iraq, is in the process of acquiring the 47.4% stake owned by a subsidiary of Abu Dhabi National Energy Company PJSC (TAQA) in Atrush Production Sharing Contract in Kurdistan.
In a statement on Monday, ShaMaran Petroleum said it has entered into definitive agreements for the two-step transaction to increase its indirect working interest in the Atrush Block in Kurdistan from 27.6%, with HKN Energy IV, Ltd., an affiliate of HKN Energy Ltd., indirectly acquiring a 25% working interest and operatorship, subject to required approvals.
The financial terms for the deal were not disclosed.
In the first step of the transaction, ShaMaran’s wholly-owned Cayman subsidiary, General Exploration Partners, Inc. entered into an agreement with TAQA International B.V., a subsidiary of Abu Dhabi-based TAQA to acquire TAQA Atrush B.V.
TABV is a Dutch holding company with a 47.4% working interest and operatorship in the Atrush Production Sharing Contract in Kurdistan.
In the second step of the transaction, TABV will transfer a 25% working interest in the Atrush PSC to GEP2, a new Cayman wholly-owned subsidiary of GEP. In parallel, GEP has entered into an agreement to sell GEP2 to HKN IV for nominal consideration such that HKN IV will hold a 25% working interest and operatorship in the Atrush PSC.
The sale of GEP2 to HKN IV will be subject to approval by the Kurdistan Regional Government.
ShaMaran Petroleum said following the two-step transaction it will increase its indirect 27.6% working interest in the Atrush Block to 50%.
The Atrush Block is an oil field located approximately 85 kilometers northwest of Erbil, the capital of Kurdistan
(Writing by Brinda Darasha; editing by Seban Scaria)
