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01/08/2016 Press release

Total and Zarubezhneft close the deal to transfer a 20% participating interest and Kharyaga PSA operatorship

Total E&P Russie, a 100% affiliate of Total group, has transferred a 20% participating interest in and the operatorship of the Production Sharing Agreement for the Development and Production of Oil in the Kharyaga Field (Kharyaga PSA) to Zarubezhneft-Production Kharyaga LLC, a subsidiary of Zarubezhneft JSC.

Pursuant to Amendment No. 3 to the Kharyaga PSA signed by representatives of the State and investors, the split of participating interests as of August 1, 2016 is as follows: 20% each for Zarubezhneft JSC and Zarubezhneft-Production Kharyaga LLC (operator), 30% for Statoil Sverige Kharyaga AB, 20% for Total E&P Russie, and 10% for the Nenets Oil Company JSC. 

About Kharyaga PSA

The Kharyaga PSA came into force on January 1, 1999 for a 20 years period with possible extension by 13 years on the same terms. Together with the investors, the party to the Agreement is the State, represented by the RF Ministry of Energy and the Administration of the Nenets Autonomous District.

The Kharyaga PSA involves the development of objects 2 and 3 of the Kharyaga oil field in the Nenets Autonomous District.

The project is technically challenging, with complex geology, heterogeneous carbonate reservoirs, waxy oil and a high content of H2S in associated gas.

The production rate is 1.5 million tons per year. Since its start up in 1999, the project has safely produced a cumulative 17.4 million tons of oil. The total amount of revenues from the Kharyaga PSA for the budget of the Russian Federation is more than $3 billion.

Information on the companies

Total’s hydrocarbons exploration and production activities in Russia

Total has been present in Russia for 25 years. In 2015, it produced 290,000 barrels of oil equivalent per day in Russia. Apart from the onshore Kharyaga oil field, this production comes from its 18.9% share in Novatek and from the Termokarstovoye field operated by Terneftegas, a joint venture between Novatek (51%) and Total (49%). In addition, Total and Novatek are partners in the Yamal LNG project, currently under construction in the Yamalo-Nenets Autonomous District. www.ru.total.com

About Total

Total is a global integrated energy producer and provider, a leading international oil and gas company, and the world’s second-ranked solar energy operator with SunPower. Our 100,000 employees are committed to better energy that is safer, cleaner, more efficient, more innovative and accessible to as many people as possible. As a responsible corporate citizen, we focus on ensuring that our operations in more than 130 countries worldwide consistently deliver economic, social and environmental benefits. www.total.com

 

About Zarubezhneft

Zarubezhneft is one of Russia’s leading state-owned energy companies with almost 50 years unique experience of economic activities in various regions of the world. Over 50 years, large-scale oil & gas projects have been executed in 30 countries worldwide. The Company is highly competent in developing offshore fields in South-East Asia (over 30 years) and difficult Arctic fields in the Russian Federation.

At present, it focuses on developing upstream, downstream and innovation projects in Vietnam, the Balkans, the Republic of Cuba, the Russian Federation and Belarus. The Company is on the list of strategic enterprises of Russia. www.zarubezhneft.ru

 

Contacts:

Zarubezhneft JSC:

Rustam Kazharov

[email protected]

+7 985 250 81 60

 

Total E&P Russie:

Maria Chernenkova

[email protected]

+7 495 228 62 00