Total Signs Agreement to Buy 49 Percent Stake in Novatek Subsidiary Terneftegaz

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Total has signed an agreement to purchase 49 percent of the Russian drilling firm Novatek’s wholly-owned subsidiary, Terneftegaz, Total Russia General Director Pierre Nerguararian said in his presentation to the 7th Russian Petroleum and Gas Congress at the Moscow International Oil&Gas Exhibition in Moscow on June 25.

Terneftegaz owns the licenses for the Termokarstovoye gas condensate field about 250 km east of Tarko-Saleh on the Yamal Peninsula. The field holds, according to ABC1+C2 audits, 47.3 billiom cubic meters of natural gas and 10.3 million tons of liquid hydrocarbons.

Novatek, founded in 1994, is engaged in the exploration, production and processing of natural gas and liquid hydrocarbons and had 4.96 bln bbpoe of proved reserves at the end of 2008.  The Company’s upstream activities are concentrated in the Yamal-Nenets Region, which is the world’s largest natural gas producing area and accounts for over 90 percent of Russia’s natural gas production and 20 percent of the world’s gas production, claims the Novatek website.

Total is a partner in the Shtokman Field development project with Gazprom and StatOilHydro.

Murmansk will be the operations base for the Shtokman project.

"In Murmansk, we have the possibility to do what was done in Norway 40 years ago. Shtokman is to the Barents Sea what Ekofisk was 40 years ago" to the North Sea, said Nerguararian in his presentation.

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