Prime Minister Vladimir Putin looks on as Novatek and France’s Total sign cooperation memorandums
2 march 2011
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."
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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.