Russia’s Federal Antimonopoly Service said it has approved the intention of Total SA unit Total Razvedka Razrabotka Yamal to join the shareholding structure of the Yamal LNG project.
“We are satisfied with our interaction with Total Razvedka Razrabotka Yamal when considering this application, which ensured timely accomplishment of all procedures necessary for this major transaction to take shape,” said FAS Deputy Head Andrei Tsyganov.
In March, Total Chairman Christophe de Margerie and Novatek Chairman Leonid Mikhelson signed two agreements to develop cooperation between their companies.
Under the agreements, Total will become the main international partner on the Yamal LNG project holding a 20% share, while Novatek will hold a 51% interest.
The firms also agreed that Total will take a 12.08% stake in Novatek with the intent of both parties to increase the share to 15% within 12 months and to 19.4% within 36 months.
The Yamal LNG project will develop the South Tambey field in the Arctic area of the Yamal peninsula.
The reserves of the field are estimated at 44 tcf of gas, allowing production of more than 15 million tonnes/year of LNG.
Total said it will have access to proved and probable reserves of 800 million boe within the license duration and to a plateau production in the next decade of 90,000 boe/d.
Novatek expects to build the Yamal LNG project in three phases: the first is to be completed in late 2016, while construction of the second and third is to take place in 2013-17 and 2014-18 (OGJ Online, July 22, 2011).
Contact Eric Watkins at [email protected].