Novatek becomes sole owner of Russian gas field after TotalEnergies deal

Russian LNG producer Novatek will become the sole owner of the Termokarstovoye gas and condensates field in Russia following a deal with France’s TotalEnergies.

Novatek said in a statement on Friday it purchased a 49 percent stake in Terneftegas, engaged in developing the Termokarstovoye field, from TotalEnergies.

As a result, Novatek would own a 100 percent stake in Terneftegas, the firm said without providing any additional information.

According to Novatek’s website, the Termokarstovoye field was launched into commercial production in May 2015.

The peak capacity of the field is about 2.4 billion cubic meters of natural gas and 0.8 million tons of de-ethanized gas condensate per year.

Deal to close in September

TotalEnergies said in a separate statement it expects to close the deal in September 2022, subject to customary conditions.

The French energy giant has a 19.4 percent interest Novatek. It also holds 20 percent in Novatek’s Yamal LNG project and 10 percent of the Arctic LNG 2 development that should start first exports next year.

Earlier this year, TotalEnergies said it would continue to supply LNG from the Yamal plant to Europe, but it would not provide any more capital for the Arctic LNG 2 project.

“TotalEnergies reiterated its firmest condemnation of Russia’s military aggression against Ukraine and stated that it would ensure strict compliance with current and future European sanctions, no matter what the consequences on the management of its assets in Russia,” it said.

In line with these principles, TotalEnergies agreed to sell to Novatek the stake in Terneftegaz on July 18, the firm said in the statement.

According to TotalEnergies, the deal would enable the firm to “recover the outstanding amounts invested in the field.”

On August 25, 2022, Russian authorities issued their agreement to the proposed sale.

As a result, Novatek and TotalEnergies signed the final sale and purchase agreement on August 26, it said.

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