Kazakh company to acquire TotalEnergies Kazakhstan affiliate
Kazakh company Oriental Sunrise Corp. Ltd. agreed to acquire Total E&P Dunga GmbH, a TotalEnergies affiliate, for $330 million. Total E&P Dunga holds 60% operating interest in onshore Dunga oil field in the Mangystau region of western Kazakhstan.
Sale of the field, which produced about 7,400 boe/d net to TotalEnergies in 2022, is subject to Kazakhstan authority approval and waiver of the partners’ preemption rights, TotalEnergies said in a release Dec. 1.
In 2019, TotalEnergies and partners approved the launch of a $300-million, third phase development of the field. The plan included adding wells to existing infrastructure and upgrading the processing plant to increase capacity by 10% to 20,000 b/d of oil by 2022 under a 15-year extension of the license agreement that had been set to expire in 2024.
Dunga is operated by Total (60%), alongside partners Oman Oil Corp. Exploration & Production LLC (20%) and PTTEP (20%).
The sale is part of TotalEnergies’ energy transition strategy in Kazakhstan. In addition to two solar power plants in operation in the country (128 Mw total capacity), affiliate Total Eren signed an agreement with partners Samruk-Kazyna and KazMunayGas to develop the Mirny project—the largest wind energy project ever initiated in the country with 200 wind turbines totaling 1Gw of installed capacity and a 600 Mw-hr battery storage system.
Alex Procyk | Upstream Editor
Alex Procyk is Upstream Editor at Oil & Gas Journal. He has also served as a principal technical professional at Halliburton and as a completion engineer at ConocoPhillips. He holds a BS in chemistry (1987) from Kent State University and a PhD in chemistry (1992) from Carnegie Mellon University. He is a member of the Society of Petroleum Engineers (SPE).