TotalEnergies sells shares in Russian Terneftegaz to Novatek

By Sibel Morrow

ANKARA (AA) - French energy company TotalEnergies announced Friday that it sold 49% of its shares in Terneftegaz, one of the largest Russian oil companies, to Novatek.

The announcement came after the Le Monde newspaper reported that Terneftegaz supplied condensate gas which was later transformed to kerosene used at two Russian army bases.

Reiterating that it firmly condemned Russia’s “military aggression against Ukraine” soon after the war erupted, TotalEnergies said it would continue obeying current and future European sanctions “no matter what the consequences on the management of its assets in Russia.”

In a separate statement, it refuted claims that it produces kerosene for the Russian army, however, said it asked Novatek what happens to the gas condensates produced by the Termokarstovoye field in Russia to shed light on the issue.

Novatek responded that the media reports are baseless, according to TotalEnergies.

“TotalEnergies seeks to end this unfounded controversy which is damaging the reputation of the company and has decided to take all appropriate legal action to put an end to it if necessary,” it said.

In March 22, TotalEnergies said it would stop purchasing oil and petroleum products from Russia.

At the beginning of July, the company announced the gradual suspension of its activities in Russia “for those which do not contribute to the security of energy supply of Europe.”

The company’s partial withdrawal included its oil production facilities in the Kharyaga field and gas facilities in the Termokarstovoye field as well as other local businesses regarding lubricants and batteries.

TotalEnergies later announced the sale of its remaining 20% interest in the Kharyaga oil project to Zarubezhneft, which was finalized Aug. 3.

It agreed to sell to Novatek its 49% interest in Terneftegaz, which operates the Termokarstovoye gas and condensates field in Russia, “on economic terms enabling TotalEnergies to recover the outstanding amounts invested in the field.”

After Russian authorities formally finalized the approval of the transaction Thursday, TotalEnergies and Novatek signed the final sale and purchase agreement in Terneftegaz.

“Closing is expected in September 2022, subject to customary conditions,” the statement read.