Total joins strategic partnership with Novatek
Yesterday in Moscow, Christophe de Margerie, Total’s CEO and Chairman met with Leonid Mikhelson, Novatek’s Chairman and one of the main shareholders, and signed two Memorandums of Co-operation to develop the co-operation between Total and the Russian company Novatek and its main shareholders.
The co-operation will be developed around two transactions:
- Total will become the main international partner on the Yamal LNG project holding a 20% share. Novatek will hold a 51% interest in the project.
- Total will take a 12.08% shareholding in Novatek with the intent of both parties to increase the share to 15% within 12 months and to 19.40% within 36 months.
The Yamal LNG project will develop the South Tambey field located in the arctic area of the Yamal peninsula. The resources of this condensate and gas field are estimated at approximately 44 trillion ft3 of gas (1250 billion m3), allowing production of more than 15 million tpy of LNG. With this project, Total (20%) will have access to proved and probable reserves of approximately 800 million barrels of oil equivalent (boe) within the licence duration and to a plateau production of about 90,000 boe per day in the next decade.
Novatek is the largest independent gas producer in Russia and supplies approximately 10% of the domestic market. Its 2010 production reached 37.8 billion m3/yr of gas (750,000 boe per day including condensates). Novatek’s portfolio of resources is made of several giant fields that underlie Novatek’s strong potential for growth. Since 2009, Total and Novatek are jointly developing the Termokarstovoye field.
The 12% stake will be acquired by Total from Novatek’s two main shareholders based on stock market quotations.
Christophe Margerie highlighted that “Total is delighted with this strategic alliance with Novatek, which will accelerate the Group’s development in Russia. This agreement adds to the close co-operation built with Gazprom since 2007 on the Shotkman project.”
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/03032011/total_joins_strategic_partnership_with_novatek/
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