Total granted stake in Russian LNG project

Submitted by Charlotte Owen on Tue, 2012-03-20 16:20

20th March 2012

Total to seize 20 per cent share in Russian natural gas venture

Total active in untapping Russia's vast hydrocarbon reserves

The European Commission has granted French energy giant Total permission to acquire a 20.5 per cent stake in a hydrocarbon exploration project in the Russian Arctic.

Total will share its stake in the so-called Yamal LNG project with Russia's largest independent gas producer, OAO Novatek, the commission announced on 20 March.

The project, worth USD 15-20bn, is designed to exploit and bring to the market the vast natural gas reserves in Russia's Yamal Peninsula.

Total is already participating in five production projects in Russia and owns a stake in Novatek, which holds a majority interest in the project.

The project is currently working on the Yuzhno-Tambeiskoye gas condensate field and the construction of an LNG plant. Novatek also plans to build a sea port in the Sabetta village in Yamal and an ice-breaker tanker fleet.