Recently, TOTAL E&P Russie, a wholly owned subsidiary of TOTAL S.A. (TOT), transferred 10% of its interest in the Kharyaga oil field to state-owned Zarubezhneft of Russia. This new collaboration with Zarubezhneft is expected to further boost the company’s projects in Russia, strengthening its relations with the Russian oil companies.

TOTAL is the operator of phases 2 and 3 of the Kharyaga field located in the Nenets Autonomous District. The output of phase 3 is expected to increase to 30,000 barrels per day (b/d) in 2009 compared to 20,000 b/d in 2008. The memorandum of understanding (MOU) signed in 1999 at the same time as the Kharyaga production sharing agreement (PSA) stipulated that a Russian partner would take a stake in the project.

Another partner in the field, Norway based Statoil (STO), is also transfering a 10% interest to Zarubezhneft. Under the agreement, TOTAL will continue to operate Kharyaga with a 40% interest, along with its partners Statoil (30%), Zarubezhneft (20%) and Nenets Oil Company (10%).

TOTAL has been present in Russia since 1989. It holds a 25% interest in the first phase of the Shtokman project, alongside Gazprom (51%) and Statoil (24%). In the first phase of development, the field is expected produce 23.7 billion cubic meters of natural gas annually, of which approximately 50% (7.5 million metric tons per year) could be exported as liquefied natural gas.

In June 2009, TOTAL also signed heads of agreement with Novatek to acquire a 49% stake in its wholly-owned subsidiary Terneftegas, with Novatek retaining a 51% interest. The Russian Federal Antitrust Service had approved the deal in October 2009.

Zacks Investment Research

1. (TOT) TOTAL SA Tops Consensus EstimatesTOTAL SA (TOT) reported third-quarter earnings of €0.84 per share ($1.20 per share), above the...
2. (TOT) Total, GdF-Suez Partner with KazMunaiGasTotal (TOT) and GdF-Suez recently signed a Heads of Agreement (HOA) partnering with KazMunaiGas (KMG),...
3. (ACGY) Acergy Scores Pipeline Contract From Total in AngolaYesterday, Acergy (ACGY) said it won a contract worth about $110 million from Total (TOT)...
4. (TOT) TOTAL S.A. – Value – Zacks Rank BuyTOTAL S.A. (TOT), the large French oil company, is exploring in areas of the world...
5. (BAC) Stock performance based on short interestBespoke brought an interesting research study on short positions to our attention earlier this week,...
6. What to Do When Interest Rates RiseThe Oxford Portfolio Update – January 15, 2009 (Broadcast #838) Rising interest rates will decimate...

Search Posts by Tag: StatoilHydro ASA | STO | TOT | Total SA | Basic Materials | Major Integrated Oil & Gas

RSS Feeds by Tag: StatoilHydro ASA | STO | TOT | Total SA | Basic Materials | Major Integrated Oil & Gas |

Other Posts by: vitalstocks | RSS Feed for this author