Page 9 - FSUOGM Week 35 2022

FSUOGM INVVESTMENT FSUOGM

TotalEnergies sells 49% stake

of Novatek JV in Siberia

RUSSIA RUSSIA’S Novatek confirmed on August 26 it the sale on August 8. The sale is on track for clo-
had bought a 49% stake in its Terneftegaz joint sure next month.
Jet fuel produced from venture with TotalEnergies from its French part- TotalEnergies also said that it would produce
condensate extracted ner, bringing its ownership to 100%. gas condensate jointly with Novatek in Rus-
at the project was used Terneftegaz controls the Termokarstovoye sia, but said that the jet fuel it is converted into
at a Russian military gas condensate field in Russia’s northern Yama- would all be exported. Global Witness, a cam-
base, according to an lo-Nenets region, was brought on stream in 2015 paign group that helped Le Monde compile its
independent report. and produces gas at a rate of 2.4bn cubic metres report, has claimed contradictions in TotalEner-
per year. Novatek also transferred 100% of the gies’ statements and has called for there to be an
nearby Chernichnoye oil and gas field to the joint enquiry.
venture last year. According to the report, the kerosene pro-
TotalEnergies and most other Western oil duced from Terneftegaz’ condensate was used
majors have committed to withdrawing from at bases that host Sukhoi Su-34 fighter-bombers,
Russia over time in response to Moscow’s inva- accused of being used to bomb civilian areas in
sion of Ukraine. But unlike its peers, TotalEn- Ukraine. After treatment at the nearby Purovsky
ergies is working towards a very slow exit, and processing plant, Global Witness says the con-
it has ruled out divesting its stake in the Yamal densate is shipped by train to a refinery in Omsk,
LNG plant in the Russian Arctic, arguing that neart the Kazakh border, where it is refined into
doing so might threaten gas supply to Europe at gasoline, diesel and jet fuel. Hundreds of ship-
a time when the market is very tight. ments of jet fuel from the Omsk refinery have
Complicating exit plans, a Russian presi- then been sent to Russian air force bases near
dential decree published earlier this month has the Ukrainian invasion, both before and after
banned investors from what Moscow describes the invasion started, according to the campaign
as “unfriendly countries”, including France, from group.
selling shares in strategically important energy “Total have long been accused of helping to
projects and banks until the end of the year, finance the war through their trade of Russian
although the decree does allow for waivers in fossil fuels, but we now know that they have
certain cases. also been fuelling Russian military attacks on
The announcement of the sale at Terneft- Ukrainian civilians from their joint-owned
egaz comes after French newspaper Le Monde Siberian gas fields,” Global Witness’ senior data
reported that TotalEnergies had sold gas con- investigations advisor Louis Goddard said in a
densate from the project that was later converted statement. “They have said their production has
into kerosene and used at two Russian military no connection to Russia’s military operations,
bases. In a statement on August 26, the French but that is no longer a tenable position. Total
company said it had planned its divestment must come clean and explain what they knew
before the controversy was revealed, and had about the connection between these gas fields
sent a request to Russian authorities to approve and Russian war planes." ™

Week 35 02•September•2022 www. NEWSBASE .com P9