The two companies on Thursday announced that the deal on a 20 percent acquisition of the project has been formalized.
The deal follows up the MOU signed by the companies in March this year.
Read also: Total strikes deal on Yamal LNG
The deal puts Total firmly in the lead among foreign companies operating in the Russian Arctic. The company is from before a partner in the Shtokman project, as well as in the Kharyaga project in the Timan Pechora province.
“Total is very pleased to be given this opportunity to be pioneers in an untapped region. We will work with Novatek to unlock the Yamal peninsula gas potential using world-class technology and combining the expertise of both companies as we build a Liquefied Natural Gas (LNG) plant in the area,” said Yves-Louis Darricarrère, President Total Exploration & Production in a press release.
The deal includes Total’s acquisition of a 12.08 percent shareholding in Novatek, a stake which will be increased to 15 percent within 12 months and to 19.40 percent within 36 months.
In return, the French company will provide financing and credits to the project, Novatek informs.
Read also: Novatek builds giant Arctic LNG tanker
The Yamal LNG project will be based in the resources of the South Tambey project. An annual 15 million tons of LNG will produced along with one million tons of condensate. The first part of the project is due to be ready for production in 2016, the Russian company informs. That is two years earlier than a previously announced time schedule.