Our Arctic Neighbors: Russian company gets share in Nenets field

Total E&P Russie, a subsidiary of France’s Total, is transferring a 10 percent interest in the Kharyaga oil field in Russia’s Nenets Autonomous Okrug to Russian state-owned company Zarubezhneft, Total said in a release Nov. 27. A memorandum of understanding signed in 1999 at the same time as the Kharyaga Production Sharing Agreement stipulated that a Russian partner would take a stake in the project.

Total is the operator of phases two and three of the Kharyaga field. The development of phase three, which received the go-ahead in December 2007, should increase output to 30,000 barrels per day, compared to 20,000 bpd in 2008.

“The addition of Zarubezhneft as a partner in the Kharyaga field will further strengthen relations between Russian oil companies and Total,” said Yves-Louis Darricarrère, president of Total Exploration & Production. Another partner in the field, Norway’s Statoil, is also transferring a 10 percent interest to Zarubezhneft.

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

—Sarah Hurst