CEO says Total not to raise stake in Russia's Yamal LNG

HOUSTON, U.S., Apr 21 (PRIME) -- French oil giant Total does not plan to increase its share in Russia’s liquefied natural gas producer Yamal LNG and will not purchase a 9% stake currently owned by independent gas producer Novatek, CEO Patrick Pouyanne told reporters Tuesday during the IHS Ceraweek 2015 conference.

“I am very happy that we have 20% in the project. I don’t want to buy the stake offered by Novatek,” Pouyanne said.

On April 13, Novatek CEO Leonid Mikhelson said the shareholders of the Yamal LNG hope to receive about U.S. $5 billion project financing from exports and imports agencies, European and Asian banks and to sell a 9% stake in the company until July. Novatek does not plan to decrease its stake in the project to below control, he said then.

The Yamal LNG project envisages the construction of a $26.9 billion16.5 million tonne LNG plant at the resource base of the Yuzhno-Tambeiskoye field. Novatek owns 60% in Yamal LNG, while France’s Total and China’s CNPC own 20% each. The first plant’s production line is expected to be launched in 2017.

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