French oil giant Total SA (NYSE:TOT) has teamed up with Russia’s Novatek to develop the Yamal gas liquefaction project.
Novatek, Russia’s largest independent gas producer, intends to keep at least a 51% stake in the project, the French company said. Total’s partnership brings its stake in the project to 20%.
Financial details of the acquisition were not disclosed.
Total said that the “relevant Russian authorities” approved the project on August 22, which involves the production of at least 15 million metric tons of liquefied natural gas a year.
Under the license, Total will have access to proved and probably reserves of about 800 million barrels of oil equivalent a day and a plateau production of about 90,000 barrels a day.
“Total is very pleased to be given this opportunity to be pioneers in an untapped region,” said the company’s president of exploration and production, Yves-Louis Darricarrère.
“We will work with Novatek to unlock the Yamal peninsula gas potential using world-class technology and combining the expertise of both companies as we build a liquefied natural gas plant in the area,” he said.
Total has been present in Russia since 1989 and already operates and has interests in several fields. The French company and Novatek have worked together since 2009 through joint development of the Termokarstovoye field.