News // Companies
Total and Zarubezhneft close the deal to transfer a 20% participating interest and Kharyaga PSA operatorship
02 August 2016 , 12:14Neftegaz.RU770
Total E&P Russie, a 100% affiliate of Total group, announced on August 1, 2016, that the company has transferred a 20% participating interest in and the operatorship of the Production Sharing Agreement for the Development and Production of Oil in the Kharyaga Field (Kharyaga PSA) to Zarubezhneft-Production Kharyaga LLC, a subsidiary of Zarubezhneft JSC.
Pursuant to Amendment No. 3 to the Kharyaga PSA signed by representatives of the State and investors, the split of participating interests as of August 1, 2016 is as follows: 20% each for Zarubezhneft JSC and Zarubezhneft-Production Kharyaga LLC (operator), 30% for Statoil Sverige Kharyaga AB, 20% for Total E&P Russie, and 10% for the Nenets Oil Company JSC.
The Kharyaga PSA came into force on January 1, 1999 for a 20 years period with possible extension by 13 years on the same terms. Together with the investors, the party to the Agreement is the State, represented by the RF Ministry of Energy and the Administration of the Nenets Autonomous District.
The Kharyaga PSA involves the development of objects 2 and 3 of the Kharyaga oil field in the Nenets Autonomous District.
The project is technically challenging, with complex geology, heterogeneous carbonate reservoirs, waxy oil and a high content of H2S in associated gas.
The production rate is 1.5 million tons per year. Since its start up in 1999, the project has safely produced a cumulative 17.4 million tons of oil. The total amount of revenues from the Kharyaga PSA for the budget of the Russian Federation is more than $3 billion.
Total has been present in Russia for 25 years. In 2015, it produced 290,000 barrels of oil equivalent per day in Russia. Apart from the onshore Kharyaga oil field, this production comes from its 18.9% share in Novatek and from the Termokarstovoye field operated by Terneftegas, a joint venture between Novatek (51%) and Total (49%).
In addition, Total and Novatek are partners in the Yamal LNG project, currently under construction in the Yamalo-Nenets Autonomous District.
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