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Total Signs Agreements with Novatek

8 March 2011

Total has signed two memorandums of cooperation with Russian independent natural gas producer Novatek for a total value of $4bn.

According to the memorandums, Total will acquire a 20% share in the Yamal LNG project in the Yamal Peninsula.

Total will also acquire a 12.08% share in Novatek with the intent of both parties to increase the share to 15% within one year and to 19.4% within 36 months.

Novatek will hold a 51% interest in the Yamal LNG project, which has estimated resources of 44 trillion cubic feet of gas and a production capacity of over 15 million tonnes of liquefied natural gas per year.

Total will have access to 800 million barrels of oil equivalent within the licence duration and a plateau production of 90,000boe per day in the next decade.