Total and Zarubezhneft have agreed to adjust their participation in the Kharyaga production sharing agreement whereby Total will transfer a 20% interest together with operatorship to Zarubezhneft.
Subject to the approval of the Russian authorities, following the completion of the transaction Total will retain a 20% interest in Kharyaga alongside Zarubezhneft as operator (40%), Statoil (30%) and Nenets Oil Co. (10%).
“Russia remains a key country for the group,” said Arnaud Breuillac, President, Total Exploration and Production.“Total has ambitious plans for the future through its established partnership with Novatek and the ongoing Yamal LNG project.
“This transfer represents a new stage in the life of Kharyaga. A more substantial role for Zarubezhneft alongside our continued involvement will allow us to extract maximum value from Kharyaga for many years to come,” Breuillac said.
Kharyaga involves the development of the Kharyaga oil field in the Nenets Autonomous District, with production of 30,000 bo/d. The project is technically challenging, according to Total, with complex geology, heterogeneous carbonate reservoirs, waxy oil and a high content of H2S in associated gas. Since its start up in 1999, Kharyaga has produced a cumulative 15 million tonne of oil.
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