TotalEnergies CEO: Arctic LNG 2 plant to be closed in Russia

Novatek to receive 10% of the total stake

* CEO: 'It is in the company's best interest.

No mention of the sale price

By America ?Hernandez

Patrick Pouyanne, the CEO of TotalEnergies, announced on Thursday that it would be selling its stake in Arctic LNG 2 in Russia.

He told analysts on a call about the second quarter results that the transfer of Total's stake of 10% to Nordline, which is a subsidiary owned by the majority owner of the plant, was approved by Russian authorities and would be completed soon. Total retained ownership of key Russian LNG plants after Western sanctions were imposed on Russia following the 'invasion of Ukraine.' However, it has now considered selling the stakes when European Union sanctions ban companies from importing or exporting that gas by?2027. Pouyanne explained that Novatek approached him about a possible transfer as soon as Arctic LNG 2 was subject to U.S. sanction in November 2023. Pouyanne noted that Total had already declared force majeure and taken a $4.1billion impairment on the project by?2022. He said the proposal was in the?interest of the company. The CEO didn't use the word "sale". TotalEnergies' press officer did not immediately answer a question about whether Total expects to be compensated and at what value for its stake. Many foreign companies have either sold or had their Russian assets seized in the aftermath of the 'war. Gazprom, the Kremlin's?energy company, acquired a 27.5% stake in Russian LNG Project?Sakhalin II, by decree. The previous owner, British oil giant BP, had taken a $1.6billion impairment. Reporting by America Hernandez, Paris. Editing by Charlotte Van Campenhout & Louise Heavens

(source: Reuters)