TAQA Atrush BV, a wholly owned subsidiary of The Abu Dhabi National Energy Company TAQA has signed an agreement with ShaMaran petroleum Corporation to increase its working interest in the Atrush Block in Iraq’s region by 7.5%.
The Acquisition will increase TAQA’s majority share in the block to 47.4%, while ShaMaran’s participating interest in Atrush will be 27.6%.
ShaMaran and TAQA Atrush BV (“TAQA”), Operator of the Atrush Block, have agreed jointly to acquire from Marathon its 15% participating interest in the Atrush Block held through MOKDV in equal proportions of 7.5%.
The transaction has been structured by way of back to back agreements, with ShaMaran agreeing to purchase all the shares of MOKDV from Marathon, and concurrently entering into an agreement to sell to TAQA half of the acquired participating interest.
Pursuant to a share purchase agreement (SPA) between ShaMaran and Marathon International Oil Company, ShaMaran will acquire 100% of the shares of MOKDV for $63 million, subject to final closing adjustments.
Pursuant to a separate asset purchase agreement (APA) between the Company and TAQA, the Company will sell 7.5% of MOKDV’s 15% participating interest in the Atrush Block to TAQA.
TAQA has agreed to contribute to the purchase price under the APA concurrently with the closing of the Company’s acquisition of MOKDV’s share capital under the SPA.
The Acquisition is conditional on the consent of the KRG and subject to certain other closing conditions including regulatory approvals. Closing is expected to occur in the first quarter of 2019.
TAQA, a leading global energy company headquartered in Abu Dhabi with operations in 11 countries worldwide, has started oil production at its Atrush Block in the Kurdistan region of Iraq in July 2017 with a capacity to handle up to 30,000 barrels of oil per day.