Russian natural gas producer Novatek announced on Tuesday that it signed an agreement to sell a 10% stake in its Arctic LNG 2 project on the Gydan Peninsula to French oil giant Total S.A.
According to the agreement, Total, which holds a 19.4% stake in Novatek, will have the possibility to increase its stake in the Arctic LNG 2 up to 15% in case the Russian company decides to further reduce its holding in the project. Furthermore, the deal gives the French firm the opportunity to buy a 10% to 15% share in all Novatek's future LNG projects on the Yamal and Gydan peninsulas.
"We are delighted to have concluded the definitive agreements for our entry into this new world class LNG project based on the vast Russian gas resources alongside our partner Novatek. Arctic LNG 2 builds on the success of Yamal LNG and will introduce several innovative solutions to further increase competitiveness," Total CEO Patrick Pouyanne stated.
