Total Increases Russian Exposure With Novatek Deal

摘要

French major Total has signed a US$4bn cooperation deal with private Russian gas company Novatek. Under the deal, Total will become the main international partner at Novatek's Yamal LNG project and will initially buy a 12% stake in the company, which it plans to increase to 19.4% within three years. The deal fulfils a longstanding ambition for Total, which tried to acquire a 25% stake in Novatek in 2005, and will significantly increase the company's Russian reserves and production. For Novatek, the agreement provides it with a strategic partner with technological capability and access to funding.