TotalEnergies Sells Siberia Gas Field Stake to Russia’s Novatek

TotalEnergies decided to sell its stake in a Siberian gas field, owned in a joint venture with Russia’s Novatek, to the Russian fossil fuel company. The French energy giant has been criticized for not moving away from its business dealings in Russia. The company has, unlike many of its Western peers, hold onto its Russian assets so far. The company has not revealed what it would do with its 19% stake in Novatek itself, or its other businesses in the country.

Earlier this month, a Russian presidential decree banned investors from “unfriendly countries”, including France, selling stakes in certain energy projects and banks until the end of the year, but it provides for waivers in some cases.

The development will be viewed as a small positive by TotalEnergies’ peers such as BP or Shell, which have been stuck with tens of billions worth of assets in Russia and have struggled to find buyers.,

Regarding the sale of its stake in Terneftegaz, which operates the Termokarstovoye gas and condensates field in Siberia, TotalEnergies said it expected the deal to close in September.

The company said the agreement was made on July 18, 2022, to sell to Novatek TotalEnergies’ 49% interest in Terneftegaz. It added that it had sent Russian authorities a request to approve the deal on Aug. 8 and that it got the green light on Thursday.

It was reported recently that Termokarstovoye gas field is supplying the Russian army. TotalEnergies rejected the claims saying the all of its output was for export purposes.

TotalEnergies decided in July to sell the remaining 20% interest it held in the Kharyaga oil field, in what was its first major divestment in Russia in the wake of Western sanctions over Moscow’s invasion of Ukraine.

It still has minority stakes in a number of non-state-owned Russian companies, such as Novatek (19.4%), Yamal LNG (20%) and Arctic LNG 2 (10%).

Need to access the insight?

Start your 7-day free trial now

Need to access the insight?

Start your 7-day free trial now

Need to access the insight?

Start your 7-day free trial now

Do you need to access special insights on this matter?

Start your 7-day free trial  and become a member today

Subscribe to Top Insights Today

Subscribe to Executive Newsletter 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

By clicking subscribe you agree to our privacy and cookie policy and terms and conditions of use.

Read more insights

Xi, Putin Set to Attend G20 Meeting in Indonesia

Chinese President Xi and Russian President Putin will attend the G20 meeting scheduled for this November in Indonesia, according to Indonesian President Joko Widodo who said that the two leaders have given him their assurances. Russian officials confirmed that Putin was planning to attend, though no formal announcement has been made so far.

Pentagon to Gather Weapon Makers Over War in Ukraine

The Pentagon will meet with leaders from the top eight U.S. weapons manufacturers on Wednesday to find out if the industry’s resources are enough to meet Ukraine’s needs if the war against Russia lasts years. 

Future of Russo-European Relations Is Tied to Natural Gas

The energy interdependence of Europe and Russia has become a critical bargaining chip as tensions between the West and Moscow don’t seem like they will cool down any time soon. Russia delivers gas to Europe via a series of pipelines, the biggest flowing through Ukraine. 

Stay informed

error: This content is protected !!