Special Report-TotalEnergies Exits Kharyaga Project in Russia
- July 7, 2022
- Posted by: Quatro Strategies
- Category: Energy
France’s TotalEnergies has finalized a deal to transfer its remaining stake in Russia’s Kharyaga oil field to the state producer Zarubezhneft. This will become the company’s first major divestment from Russia, which is stricken with Western sanctions. The company said in a statement that it agreed to transfer the remaining 20% stake that the company held in the project. The transaction will still need approval from the Russian authorities. TotalEnergies did not reveal the terms of the transfer.
The Kharyaga oil project is operated under a product sharing agreement. TotalEnergies had received 100,000 tonnes of oil per month for exports as part of the agreement.
The French company did not act as the seller of that volume in June. Zarubezhneft sold it instead.
TotalEnergies had been a shareholder in the Kharyaga oil project for over 20 years along with Norway’s Equinor, which quit earlier this year.
The company announced in March that it would not renew its supply contract of gasoil and crude oil from Russia for its German refinery. Instead it would source gasoil from Saudi Arabia and crude oil via Poland.
The French energy giant still has minority stakes in a number of Russia fossil fuel projects, including Novatek (19.4%), Yamal LNG (20%), Arctic LNG 2 (10%) and TerNefteGaz (49%). It has been criticized for acting slow and not joining rivals Shell and BP in divesting oil and gas assets in Russia.
The company has said it could exit Russia if it had to because of sanctions, which have already caused it to book a $4.1 billion impairment.
Subscribe to Top Insights Today
The Executive Newsletter -Top Insights Today- puts global business events in perspective through special insights
Join the ranks of global executives and subscribe to Top Insights Today
Top Insights Today covers insights on energy, clean-tech, oil&gas, mining, rare earths, defense, aviation, infrastructure, manufacturing, electrical vehicles, big-tech, finance and politics of business
Read more insights
EU Leaders in Ukraine to Discuss Further Sanctions on Russia
European Union leaders have arrived in Kyiv to meet with Ukrainian President Zelenskiy and discuss new sanctions against Russia, as well as Ukraine’s EU membership situation. European Commission President von der Leyen arrived in Kyiv on Thursday as the first anniversary of Russia’s Feb. 24 invasion nears. Senior EU officials have met with their counterparts in the Ukrainian governments and Zelenskiy got together with von der Leyen and European Council President Michel.
EU Unveils Cleantech, Critical Materials Strategies
The European Commission unveiled its long awaited legislations, the Net-Zero Industry Act and the Critical Raw Materials Act, aimed at ensuring European industry can compete with the United States and China in making cleantech products, and securing supplies of raw materials needed for energy transition. The two pieces of legislation, part of the bloc’s Green Deal Industrial Plan, are laid out to ensure the bloc is not just a frontrunner in cutting carbon emissions, but also ahead on the technology required to do so. The commission sets targets for Europe to mine 10% of the critical raw materials it consumes, such as lithium and for the first time copper and nickel, with recycling adding a further 15%. It also aims to increase processing to 40% of its needs by 2030.
Redwood Announced $3.5 Billion Plant as U.S. Battery Belt Expanding
The new battery supply chain the U.S. hopes to build is continuing to take shape as battery recycler Redwood Materials, established by Tesla co-Founder Straubel, announced that it would spend $3.5 billion on a new site in South Carolina. The new facility will manufacture enough battery components to build more than one million electric vehicles (EVs) per year, according to a company statement. It has become the second announcement of that size in less than a month after LG Chem’s plans to build a materials plant in Tennessee.