2 march 2011

Prime Minister Vladimir Putin looks on as Novatek and France’s Total sign cooperation memorandums


With Prime Minister Vladimir Putin looking on, Novatek CEO Leonid Mikhelson and Total President Christoph de Margerie have signed:

- a memorandum on cooperation between Novatek and Total on Total's joining the Yamal LNG project

- a memorandum on cooperation between Novatek shareholders and Total concerning the sale of a stake in Novatek to Total

Vladimir Putin's remarks at the ceremony:

"My congratulations to today's participants. Total has long worked with leading Russian energy companies – Gazprom, Rosneft and Zarubezhneft. Now it will work with Novatek. This is a good deal, one with excellent prospects: Total has acquired a 12% stake in Novatek and joined the Yamal LNG project.

"Yamal boasts large reserves – this is a well-known fact. It accounts for 16 trillion cubic metres of gas alone. There are also other hydrocarbon resources. It is going to be a large and productive effort.

"I congratulate the participants and wish them every success. All the best."

* * *

A memorandum on joining the project to produce liquefied natural gas on the Yamal Peninsula entitles the French company to a 20% stake in the project, "which embodies expertise and experience in advanced global technology for the liquefaction of natural gas, its storage and transportation."

Under the second document, Total acquires a 12% stake in Novatek, which is among the world's top ten companies in terms of natural gas reserves, and intends to increase it to 19.4% within the next three years.