6 Jul 2022 15:28

TotalEnergies agrees to transfer 20% of Kharyaga PSA to Zarubezhneft, approval needed

MOSCOW. July 6 (Interfax) - TotalEnergies has agreed to transfer its 20% stake in the production sharing project or PSA to develop the Kharyaga field to the project operator, which is the state-owned Zarubezhneft.

"In line with our principles of conduct stated on March 22 regarding our withdrawal from Russian oil business, and following the transfer of the operator's role to Zarubezhneft and the reduction of our interest from 40% to 20% in 2016, TotalEnergies has agreed to transfer to Zarubezhneft the remaining 20% interest that the Company held in the Kharyaga oil field. This transaction is subject to the approval of the Russian authorities," the French company said.

Norway's Equinor, which owns 30% of Kharyaga, said at the end of May that it would exit the project. It said it had signed the relevant agreement but did not say to whom the stake would be transferred.

The Kharyaga field produced 1.56 million tonnes of oil in 2021. Zarubezhneft Production Kharyaga held 40% of the project before the foreign partners said they were pulling out. Nenets Oil Company owns 10%.

Russia gas two other PSA projects, Sakhalin-1 and Sakhalin-2.