Total expects to close sale of stake in Kharyaga PSA by Sept
MOSCOW. July 6 (Interfax) - Total expects to close the deal to sell its 20% stake in the Kharyaga production sharing agreement to Russian oil company Zarubezhneft by September, the French oil company's CEO, Patrick Pouyanne said in an interview with national daily Kommersant published on Wednesday.
Total expects the deal to be closed in the course of the summer, by September, Pouyanne said, adding that work has to be completed on legal formalities.
Kharyaga became Total's first long-term project after the company started working in Russia 25 years ago and it enabled the company to acquire experience working in the Russian Arctic, but now, in the context of low oil prices, Total needs to optimize its assets and prioritize cost management, Pouyanne said.
Therefore, Total is handing over the operatorship to Zarubezhneft, an experienced Russian company that will be able to more effectively work with Russian contractors in the region, Pouyanne said.
Total is not pulling out of the project completely and wants to continue to contribute its experience in understanding the geological structure of Kharyaga and the particulars of developing the field, Pouyanne said.