Total has failed to meet production targets and should be deprived the project operator responsibility, the ministry says. The French company has also failed to reduce the level of flare gas from the oil installations, newspaper Vedomosti reports.
The ministry in late December proposed to hand over the project management to Russian companies, an unnamed government representative told the newspaper. The likely contender for the position is state-owned Zarubezhneft, which from before controls a 20 percent stake in the project.
Total has been in charge of the Kharyaga project since the project Production Sharing Agreement (PSA) came into force in 1999. The company’s stake was reduced to 40 percent (from 50%) in connection with the inclusion of state-owned Zarubezhneft in 2009.
Also Statoil has been part of the project consortium from the very start and today controls a 30 percent stake. An exclusion of Total from the project could affect also the involvement of the Norwegian company.
The Kharyaga partners have not been able to boost production to the original plans. Peak production of 3,2 million tons planned for 2013 has been downscaled to about 2 million tons planned for 2017-2018.
The Kharyaga is one very few Russian oil fields managed on the principles of a PSA and discontent has repeatedly been high in the federal ministry. Speculations about a reshuffle in the project consortium have been running high, but Total and partners have still managed to keep their positions.
The field is located in the Nenets Autonomous Okrug, a highly oil-rich Arctic region. It holds about 49 million tons of extractable resources.
As previously reported, the Kharyaga was in 2012 connected by pipeline with the Varandey terminal on the Arctic sea coast.
