- ShaMaran Petroleum (TSXV:SNM) will restart oil exports via the Iraq-Turkey Pipeline following an interim agreement between the Kurdistan Regional Government, Government of Iraq and several oil companies, including ShaMaran
- ShaMaran, part of the Lundin Group of Companies, is a Canadian oil and gas producer focused on the Kurdistan region of Iraq
- ShaMaran stock has added 321.43 per cent year-over-year and 637.50 per cent since 2020 driven by consistent debt reduction and increases in working interest production
ShaMaran Petroleum (TSXV:SNM) will restart oil exports via the Iraq-Turkey Pipeline following an interim agreement between the Kurdistan Regional Government, Government of Iraq and several oil companies, including ShaMaran.
Oil is expected to flow in the coming days protected by an Iraqi Budget Law amendment in February 2025, which allows for an initial three-month period during which international oil companies will be paid US$16 per barrel to account for production and transportation costs.
This arrangement results in competitive pricing compared to local Kurdistan oil sales, to be followed by a reconciliation with existing Kurdistan Production Sharing Contracts based on relevant invoices and contractual entitlements.
The Iraqi State Organization for Marketing of Oil will market ShaMaran’s oil at the Kirkuk blend official selling price and the company will be paid in arrears.
ShaMaran’s 50-per-cent-owned Atrush Block is currently producing about 35,000 barrels of oil per day (bopd), while its 18-per-cent-owned Sarsang Block is yielding more than 30,000 bopd.
Management commentary
“We welcome the resumption of oil exports from the Kurdistan region and thank our operating partner, HKN Energy, for leading the negotiations,” Garrett Soden, president and chief executive officer of ShaMaran Petroleum, said in Friday’s news release. “Pipeline exports are critical for the future stability and prosperity of both the Kurdistan region and federal Iraq. We believe these agreements will benefit all Iraqis and allow international oil companies to continue investing in the region while receiving the contractual value of the oil produced.”
About ShaMaran Petroleum
ShaMaran is a Canadian oil and gas company focused on the Kurdistan region of Iraq. ShaMaran is part of the Lundin Group of Companies.
ShaMaran stock (TSXV:SNM) last traded at C$0.30. The stock has added 321.43 per cent year-over-year and 637.50 per cent since 2020 driven by consistent debt reduction and increases in working interest production.
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