Total partners with Novatek Yamal LNG project in Russia

Total partners with Novatek on Yamal LNG project in Russia

4:17 PM, 25th May 2011
Total partners with Novatek on Yamal LNG project in Russia

MOSCOW, RUSSIA: Total and Novatek said that they signed two memorandums to develop co-operation between the two companies in Russia. During the visit to Russia, Christophe de Margerie, Chairman and CEO, Total and Leonid Mikhelson, Chairman, Novatek (Russian company) agreed upon the co-operation to be developed around two transactions:

 

Total will become the main international partner on the Yamal LNG project holding a 20 per cent share. Novatek will hold a 51 per cent interest in the project

 

Total will take a 12.08 per cent shareholding in Novatek with the intent of both parties to increase the share to 15 per cent within 12 months and to 19.40 per cent 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 cubic feet of gas (1,250 billion cubic meters), allowing production of more than 15 million tons of liquefied natural gas (LNG) per year. The 12 per cent stake will be acquired by Total from Novatek’s two main shareholders. The transaction is expected to be closed by April 2011 and amounts to approximately $ 4 billion.

 

“Total’s strategic alliance with Novatek will accelerate the group’s development in Russia. In becoming the first international investor to participate in the development of the giant gas resources of the Yamal Peninsula, Total pursues its strategy aimed at establishing partnerships in producing countries with national players,” said Margerie.

© WOC News

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