Putin Approves TotalEnergies' 10% Stake Sale in Sanctioned Arctic LNG 2 Project
Overview of the Arctic LNG 2 Stake Sale
Details of the Transaction
MOSCOW/PARIS, June 3 (Reuters) - Russian President Vladimir Putin has authorised the sale of a 10% stake in the sanctioned Arctic LNG 2 project held by France's TotalEnergies to a company named Nordline, according to a decree.
Information on Nordline and Transaction Terms
• The document provided no details about Nordline or the terms of the potential transaction.
TotalEnergies' Position
• TotalEnergies declined to comment on details of the sale.
Implications for TotalEnergies
Continued Indirect Stake
• If finalised, the French oil major would still hold an indirect stake in the project, as it owns 19.4% of private Russian liquefied natural gas company Novatek.
Impact of Sanctions
• Arctic LNG 2 was sanctioned by the U.S. over Russia's invasion of Ukraine, causing Total to invoke force majeure on its contracts to offtake LNG cargoes from the project.
Shareholder Structure
Current Shareholders
Breakdown of Ownership
• Remaining shareholders in the project include Novatek (60%), China National Petroleum Corp (10%), China National Offshore Oil Corp (10%) and a consortium of Mitsui and Japan Organization for Metals and Energy Security (10%).
Reporting and Editorial Credits
(Reporting by Anton Kolodyazhnyy and America HernandezWriting by Maxim Rodionov;Editing by Andrew Osborn and Emelia Sithole-Matarise)
