Total sells its subsidiary in Kazakhstan

TotalEnergies, the largest oil and gas company in France, has sold Total E&P Dunga GmbH, its subsidiary in Kazakhstan for $330 million, according to the press service of Total. The buyer is Oriental Sunrise Corp. Ltd. registered in Kazakhstan.

«On November 28, 2022, TotalEnergies and Oriental Sunrise Corp. Ltd. signed a purchase agreement. The latter bought Total E&P Dunga GmbH for $330 million,» said Total.

Total E&P Dunga GmbH owns a 60% share in the Dunga oil field in Kazakhstan and produces 7,400 barrels of oil equivalent per day. The other two participants of the project are Oman Oil Company Limited (20%) and Partex Kazakhstan Corporation (20%). The deal won’t enter into force until it is approved by the government of Kazakhstan and confirmed by the other two partners.

Oriental Sunrise Corp. Ltd. is a new actor on the market. According to Adata, an online service for checking contractors, the company was registered on November 17 at the Astana International Financial Center.

The Dunga oil field is located in the Tupkaragan district of the Mangystau region. Its explored reserves are estimated at 106 million tons of oil and more than six billion cubic meters of gas. The oil field has been exploited under the production-sharing agreement.

Once the deal is completed, TotalEnergies will keep just a 16.81% share in the North Caspian Operating Company, which has been exploiting the giant Kashagan oil field. In October, the company started sending its oil to Ceyhan (Turkey) through the port of Aktau, and the Baku-Tbilisi-Ceyhan pipeline to avoid potential business risks associated with transporting oil through Russia.

In October 2021, Minister of Energy Magzum Mirzagaliyev said that Total is going to invest more than $149.3 million in the third phase of the Dunga project over 2021-2025. The Ministry of Energy even extended its production-sharing agreement with Total on Dunga from 2024 to 2039. In turn, the French company was obliged to pour more investments into the project to raise oil production.

«The oil output is going to be increased from the current 680,000 tons to 860,000 tons per year. During the construction the company will create about 400 jobs,» Mirzagaliyev said at the time.

With a reduced role in the oil and gas sector, TotalEnergies is now going to expand its presence in the sphere of renewable energy sources in Kazakhstan. The company’s affiliate Total Eren, which already runs two solar power stations in the country (with a combined capacity of 128 Megawatt), has made an arrangement with Samruk-Kazyna and KazMunayGas about a new renewable power project. It is going to include 200 wind turbines with a combined capacity of one Gigawatt and a power accumulation system of 600 Megawatthours. The project will provide low-carbon electricity for more than one million people.