In the presence of the President of the Russian Federation, Vladimir Putin, and the President of the French Republic, Emmanuel Macron, Total has signed an agreement with Novatek outlining the terms upon which Total shall acquire a direct working interest of 10% in Arctic LNG 2, a liquefied natural gas project lead by Novatek on the Gydan Peninsula in the north of Siberia.
Taking account of Total’s approximate 19% stake in Novatek and Novatek’s intention to retain 60% of the project, the Group’s overall economic interest in this new LNG project will be approximately 21.5%. Should Novatek decide to reduce its participation below 60%., Total will have the possibility to increase its direct share up to 15%.
Novatek and Total have also agreed that Total will have the opportunity to acquire a 10 to 15% direct interest in Novatek’s future LNG projects in Yamal and Gydan.
With a production capacity of approximately 19.8 Mt/year, or 535,000 barrels of oil equivalent per day, Arctic LNG 2 will unlock more than 7 billion BOE of hydrocarbons’ resources in the onshore Utrenneye gas and condensate field. The project will involve the installation of three gravity-based structures in the Gulf of Ob on which will be installed the three liquefaction trains of 6.6 Mt/year capacity each.
The final investment decision is expected in 2019, with plans to start up the first train by end 2023.