TotalEnergies is silent about the Russian decision approving the sale of Arctic LNG 2 stake

According to a Wednesday decree, Russian President Vladimir Putin approved the sale by TotalEnergies of a 10% share in the sanctioned Arctic LNG 2 Project to Nordline LLC. TotalEnergies has declined to comment on the sale and made no statement about it, unlike in previous divestments. The decree mentions two Russian registered entities called Nordline LLC. Both are linked to private Russian LNG producer Novatek. Novatek did respond immediately to a comment request. Western firms are leaving Russia. Since the 2022 Russian invasion of Ukraine, and Western sanctions were imposed, many foreign companies have either sold or had their Russian assets seized. This is in response to the freezing abroad of Russian assets. Gazprom, the Kremlin's energy giant, acquired a 27.5% share in Sakhalin II, a Russian LNG project, by decree. The British oil major BP had previously owned this stake, and it was a $1.6billion impairment. TotalEnergies is an exception, having sold smaller Russian oil holdings, while maintaining a 19.4% stake in Novatek, and its interest in Yamal LNG, where LNG sales to Europe have increased in recent years. The Arctic LNG 2 decree of June 3, gave no information on Nordline, or the terms of the possible deal. TotalEnergies declared force majeure in 2024 on all LNG contracts relating to the project due to U.S. sanction imposed over Russia's invasion. TotalEnergies would have indirect exposure to Arctic LNG 2 if the sale is completed through its stake in Novatek.

The project is also owned by?Novatek (60%) and China National Petroleum Corp (10%). China National Offshore Oil Corp (10%) and Mitsui and Japan Organization for Metals and Energy Security are the other shareholders. (Reporting from Anton Kolodyazhnyy, Moscow; and America Hernandez, Paris. Maxim Rodionov wrote the article. Andrew Osborn (editing), Emelia Sithole Matarise, Mark Potter

(source: Reuters)