Citing sanctions, TotalEnergies EXCLUSIVELY abandons the Kharyaga oil project in Russia

Citing sanctions, TotalEnergies EXCLUSIVELY abandons the Kharyaga oil project in Russia

Citing sanctions, TotalEnergies EXCLUSIVELY abandons the Kharyaga oil project in Russia.

The French firm, TotalEnergies, unveiled its first significant divestiture in Russia since implementing Western sanctions by agreeing to surrender its remaining interest in the Kharyaga drilling rig to Zarubezhneft, the nation’s oil firm. 

As per a TotalEnergies spokesperson who talked to the news agency on Wednesday, the business has agreed to give Zarubezhneft the remaining 20% interest company owned in the Kharyaga oil field.

The spokeswoman continued, without going into the details about the share transfer circumstances, “This agreement is subject to the provisions of the Russian authorities. 

Operating under a production memorandum of understanding is the Kharyaga oil project. TotalEnergies acquired around 100,000 tonnes of oil for exporting each month according to the details of the contract. 

In June, Zarubezhneft, not TotalEnergies, according to two different sources in the Russian oil trading business, functioned as the purchaser of such volume.

Together with the Norwegian company Equinor, which left the process as soon as possible this year, TotalEnergies seems to have been a shareholder of the Kharyaga oil development for more than 20 years. 

The German refinery’s Russian gas contracts involving Russia and its crude oil supply contracts with Poland will also not be maintained, according to TotalEnergies, which will instead source its energy from Saudi Arabia and it’s crude from Poland. 

The French oil specialty still holds relatively insignificant shareholding in a proportion of non-Russian companies, including TerNefteGaz (10.1 percent), Arctic LNG 2 (10 percent), and Novatek (19.4 percent), Yamal LNG (20 percent), and Shell (SHEL.L) and BP (BP.L). They have joined rivals Shell and BP in disentangling oil and gas assets in Russia (49 percent ).

It has indicated that it might depolarise when the need arises due to war, which has already resulted in it recording a $4.1 billion impairment.

Acquiescence alleged 

They issued the TotalEnergies statement in response to claims made by French environmentalist associations that the company’s determination to continue to operate in Russia, in contrast to rivals Shell, BP, and ExxonMobil, amounted to “complicity in international crimes.” 

In a statement highlighting extra measures, TotalEnergies stated: “After the serious and unsubstantiated allegations of “complicity in war crimes” made against the company, the company shares with some of its stakeholders its principles of conduct regarding its Russian-based industries to help better understand how our Company is acting professionally.”

The company’s “sternest denunciation of Russia’s military adventurism against Ukraine, which seems to have tragic ramifications for the Ukrainian population and endangers peace in Europe,” according to TotalEnergies, was reaffirmed by these decisions, which happened to come after an earlier step to stop subsidizing new projects in Russia. 

In addition to discontinuing spot trading in petroleum products as of late February, the business has also determined to suspend transactions in Russian oil. 

Furthermore, the organization has stopped its corporate expansions in Russia for lubricants and batteries.

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