Total (
Paris
:FP) (LSE:TTA)
(NYSE:TOT) today signed with Novatek the final agreements to jointly develop
the Yamal LNG project, becoming the main international partner on this gas
liquefaction project with a 20% share. Novatek intends to keep at least 51%
interest in the project.
"Total is very pleased to be given this
opportunity to be pioneers in an untapped region. We will work with Novatek to
unlock the Yamal peninsula gas potential using world-class technology and
combining the expertise of both companies as we build a Liquefied Natural Gas
(LNG) plant in the area," said Yves-Louis Darricarrère, President Total
Exploration & Production. "The decision to participate in this LNG
project comes as an addition to the acquisition of a significant share of
Novatek's capital and confirms Total's long term commitment to
Russia
."
The relevant Russian authorities authorized this
acquisition on
August 22nd, 2011
.
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 will allow production of more than 15 million tons of LNG per year. With
this project, Total will have access to proved and probable (2P) 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. The project
has been declared of national interest by the Russian authorities.
Novatek,
the largest independent gas producer in
Russia
with
whom Total created a strategic alliance earlier in 2011, supplies approximately
13% of the domestic market. Its production reached 25.3 billion cubic metres of
gas for the first semester of 2011. 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 also jointly developing the Termokarstovoye field.