Total Transfers 10% Interest In Kharyaga Field To Zarubezhneft

Published: 30-Nov-2009

Total E&P Russie has transferred a 10% interest in the Kharyaga oil field to state-owned Zarubezhneft of Russia.

A memorandum of understanding (MoU) signed in 1999 at the same time as the Kharyaga production sharing agreement (PSA) stipulated that a Russian partner would take a stake in the project.

Total is the operator of phases 2 and 3 of the Kharyaga field, which is located in the Nenets Autonomous District. The development of phase 3, which received the go-ahead in December 2007, will increase output to 30,000 barrels per day (b/d), compared to 20,000 b/d in 2008.

Yves-Louis Darricarrere, president of Total Exploration & Production, said: "This new collaboration with Zarubezhneft gives an additional boost to Total's projects in Russia. The addition of Zarubezhneft as a partner in the Kharyaga field will further strengthen relations between Russian oil companies and Total."

Another partner in the field, Norway's Statoil, is also transfering a 10% interest to Zarubezhneft.

Under the agreement, Total will continue to operate Kharyaga with a 40% interest, along with its partners Statoil (30%), Zarubezhneft (20%) and Nenets Oil (10%).