Page 8 - FSUOGM Week 27 2022

FSUOGM INVESTMENT FSUOGM

TotalEnergies sheds stake

in Russian oilfield

RUSSIA TOTALENERGIES has sold its 20% stake in the operatorship of Kharyaga to Zarubezhneft in
Kharyaga oilfield in Russia’s northern Nenets 2016, as well as a further 20% interest. The trans-
The company has region, marking the first stage of what it said in action is subject to approval by Russian author-
commenced its "gradual late March would be a “gradual” suspension of ities, TotalEnergies said, without disclosing the
suspension" of Russian its activities in the country, over its invasion of price tag.
activities. Ukraine. In its late March announcement, TotalEner-
The French major announced in late March gies said it was ceasing all oil trade from Russia.
that it would only “gradually” suspend its Rus- It also said it would immediately cease all new
sian activities, stopping short of the promises investments in Russia, although it is unclear how
made by the likes of BP, ExxonMobil and Shell, this will affect Novatek’s $21bn Arctic LNG-2
which said they would seek a full withdrawal project, which is under construction, with its first
from the country as soon as possible. terminal due online in 2023. The company has a
However, those same companies’ withdrawal 10% interest in the development.
plans have stalled, owing to obstacles posed TotalEnergies has also been silent on its future
by Russian authorities, and, given the circum- role in the operational Yamal LNG plant, also
stances, their difficulty in fetching a sufficient operated by Novatek. But in its March announce-
price for their assets. Another consideration is ment, the company said it would continue trad-
the criticism that they would face in selling their ing Russian gas and would abide by its long-term
assets to a state-owned Russian company, as this contracts for supplies from Yamal LNG “as long
would mean handing over to the Kremlin more as European governments consider that Russian
financial clout to fund its war in Ukraine. gas is necessary.”
In a statement on July 6, TotalEnergies said “Contrary to oil, it is apparent that Europe’s
it was transferring its interest in the Kharyaga gas logistics capacities make it difficult to refrain
region to Zarubezhneft, the project’s operator from importing Russian gas in the next two to
and an entity closely aligned with the Russian three years without impacting the continent’s
government. The French major handed other energy supply,” it said. ™

P8 www. NEWSBASE .com Week 27 07•July•2022