TotalEnergies to divest Termokarstovoye interest to Novatek

TotalEnergies has signed a deal to sell its interest in the ZAO Terneftegaz joint venture, which develops Termokarstovoye onshore gas and condensate field in Russia’s Yamalo-Nenets region. The move is part of the company’s earlier plan to suspend activities in Russia in response to the war in Ukraine.

In July, the company agreed to sell to its 49% interest in Terneftegaz to PAO Novatek, “on economic terms enabling TotalEnergies to recover the outstanding amounts invested in the field,” the company said in a release Aug. 26, but no deal value was provided. Novatek will own 100% of Terneftegaz.

The field was brought onstream in 2015. At the time, TotalEnergies said, Termokarstovoye was expected to produce around 6.6 million cu m/d of gas and 20,000 b/d of condensate, with a combined production capacity of 65,000 boe/d.

According to Novatek’s website, 22 gas condensate wells have been drilled and the field’s infrastructure includes a gas gathering network, a gas treatment unit, and a gas condensate de-ethanization unit.

Pursuant to Russian regulations, a request to authorize the deal was addressed to Russian authorities Aug. 8, and on Aug. 25, Russian authorities issued their agreement to the sale. The agreement was signed Aug. 26 and closing is expected in September 2022, subject to customary conditions.

Energy security

In March, TotalEnergies said it would no longer provide capital for new projects in Russia following the country’s military aggression against Ukraine and that it would ensure strict compliance with current and future European sanctions (OGJ Online, Mar. 1, 2022).

The company said it continues to contribute toward securing Europe’s gas supply from the Yamal LNG plant within the framework of long-term contracts that it must honor as long as Europe's governments do not take sanctions on Russian gas. It holds a 20% interest in the joint venture, which develops resources of South Tambey gas and condensate field.

Earlier in the year, the company noted plans for a “gradual suspension of its activities in Russia for those which do not contribute to the security of energy supply of Europe,” including assets producing oil (Kharyaga field) and gas for the local Russian market (Termokarstovoye field) as well as other local businesses (lubricants, batteries), which were mothballed in the first half of the year, the company said Aug. 26.

The company finalized the sale of its remaining 20% interest in Kharyaga to state-controlled operator Zarubezhneft on Aug. 3, 2022.