Total said Friday it has increased its stake in Novatek by finalizing the acquisition of an additional 2% interest in the Russian company for around 800 million dollars.
Following this transaction, Total owns a 14.09% of share capital in Novatek. This transaction effective as of yesterday was finalized through the acquisition of shares from Novatek’s two main shareholders as per the agreement signed in March 2011.
Total is also Novatek’s main international partner on the Yamal LNG project with a 20% stake, and this transaction reaffirms Total’s long term commitment in Russia.
Novatek, the largest independent gas producer in Russia with whom Total created a strategic alliance earlier in 2011, supplies approximately 13% of the domestic market. Its production reached 38.6 billion cubic metres of gas for the first nine months 2011, increasing by more than 45% compared to the same period of 2010. Novatek’s portfolio of resources is made of several giant fields that underlie Novatek’s strong potential for growth. Since 2009, Total and Novatek are also jointly developing the Termokarstovoye field.