Total has signed Heads of Agreement (HOA) with Novatek to acquire a 49% interest in Terneftegas, a Novatek’s wholly-owned subsidiary. Novatek will maintain the remaining 51% interest.

Terneftegas holds a license to develop and produce gas and condensates in the onshore Termokarstovoye field located in the Yamalo-Nenets region. Termokarstovoye is situated approximately 250 kilometres East of Tarkosale where Novatek operates a processing facility for its own onshore production. The field has a potential of more than 47.3 billion cubic meters of gas and about 10.3 million tons of condensate. Novatek and Total will carry out additional appraisal and development studies on the Termokarstovoye field with the objective to launch the project in 2011.

The deal shall be closed upon approval of the Federal Antimonopoly Service.

“Total is very pleased to become Novatek’s partner in the Russia arctic region, which presents exciting development and production opportunities”, said Christophe de Margerie, Chief Executive Officer of Total. “This agreement with Novatek consolidates the strategy that Total aims to implement in the Russian gas sector”.

Tags: NOVATEK, Total