EU companies sign supply agreements

Electricite de France (EDF) signed a memorandum of understanding with OAO Gazprom for “at least 10%” of the consortium in charge of building the South Stream natural gas pipeline, a project backed by Gazprom and Italy's Eni SPA.

Doris Leblond
OGJ Correspondent

PARIS, Dec. 3 -- Electricite de France (EDF) signed a memorandum of understanding with OAO Gazprom for “at least 10%” of the consortium in charge of building the South Stream natural gas pipeline, a project backed by Gazprom and Italy's Eni SPA.

EDF's involvement in South Stream is a blow to the Nabucco gas line, due on stream in 2014—a year after South Stream. However, the French government also backs Nabucco for diversification of gas supply routes to Europe.

Meanwhile, Total SA recently announced its wholly owned subsidiary Total E&P Russia will transfer 10% of the Kharyaga oil field to Gazprom’s Zarubzhneft subsidiary. A MOU signed in 1999 at the same time as the Kharyaga production-sharing agreement stipulated a Russian partner would take a share in the project.

Total is operator of Phases 2 and 3 of the Kharyaga field in the Nenets Autonomous District. Development of Phase 3 will increase output to 30,000 b/d from 20,000/bd in 2008.

Another partner in the field, Norway's Statoil ASA, also is transferring a 10% stake to Zarubezhneft. Total will continue to operate the Kharyaga field with a 40% stake. Other partners include Statoil 30%, Zarubezhneft 20%, and Nenets Oil Co. 10%.

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