Novatek acquired the entire remaining share of TotalEnergies in JV Terneftegaz

MOSCOW, 26 Aug — PRIME. Novatek is acquiring France’s TotalEnergies’ 49% stake in their Terneftegaz joint venture, thus increasing its stake to 100%, the company said.

“PJSC Novatek … announces the acquisition of a 49% stake in CJSC Terneftegaz, which develops the Termokarstovoye field, from a company of the TotalEnergies group. As a result, Novatek will own 100% of CJSC Terneftegaz,” the Russian company said in a statement.

According to TotalEnergies, the agreement on the sale of the share was reached on July 18 on terms that allow the French company to reimburse the investment in the enterprise that has not yet paid off. The deal was approved by the Russian authorities on August 25, and on August 26 the final sale and purchase agreement was signed. The transfer of assets is expected to be completed in September, but Novatek’s website already states that its stake in the enterprise is 100%.

Since 2015, Terneftegaz has been producing at the Termokarstovoye gas condensate field located in the Yamalo-Nenets Autonomous Okrug (YaNAO). And an agreement on the creation of this joint venture with the French TotalEnergies (formerly Total) was reached back in 2009. It was the first joint venture with a French company, marking Novatek’s strategic partnership with Total.

The French publication Le Monde stated that TotalEnergies is involved in the supply of gas condensate for the production of jet fuel, which could be used by the Russian military in Ukraine. And, according to the newspaper, we are talking about the condensate of the Terneftegaz company.

TotalEnergies denied these reports and also published clarifications received from Novatek. He explained that unstable gas condensate from the Termokarstovoye field is sent to the Purovsky plant for stabilization. Then the already stable condensate goes to the complex in Ust-Luga and is processed into light and heavy naphtha, kerosene, gas oil and fuel oil. The resulting aviation kerosene is completely exported and does not even have the certification necessary for sale within the Russian Federation.