France’s TotalEnergies sells stake in Iraqi Kurdish oil field
The sale follows the Iraqi federal government pressuring international firms to pull out of the autonomous region, which has led to concern from the US State Department.
A French energy giant has completed the sale of its stake in an Iraqi oil field.
TotalEnergies sold its 18% interest in the Sarsang oil field in the Kurdistan Region of Iraq to ShaMaran Petroleum Corp for $155 million. An additional $15 million is payable “depending on production and oil prices,” according to a press release.
Why it matters: TotalEnergies did not share why it sold the stake and spokespeople did not immediately respond to Al-Monitor’s request for comment.
The sale follows the Iraqi federal supreme court's February ruling that the Kurdistan Regional Government's 2007 oil and gas law is unconstitutional. The KRG used the law to develop an independent oil and gas sector and make deals with international companies outside the scope of the federal government in Baghdad. The KRG has rejected the ruling from the start and the dispute has led to tensions between Erbil and Baghdad.
