French energy company TotalEnergies announced on Friday that it sold 49% of its share in Terneftegaz, one of the largest Russian oil companies, to Novatek.
The announcement came after French newspaper Le Monde reported that Terneftegaz supplied condensate gas which was later transformed to kerosene used in two Russian army bases.
Reiterating that it firmly condemned Russia’s “military aggression against Ukraine” soon after the war erupted, TotalEnergies recalled that it would continue obeying current and future European sanctions “no matter what the consequences on the management of its assets in Russia.”
In a separate statement earlier on Friday, TotalEnergies refuted the claims that it produces kerosene for the Russian army, however, informed that it asked Novatek what happens of the gas condensates produced by the Termokarstovoye field in Russia to shed light on the issue.
Novatek responded that the media reports are baseless, TotalEnergies said.
“TotalEnergies seeks to end this unfounded controversy which is damaging the reputation of the company and has decided to take all appropriate legal action to put an end to it if necessary,” it added.
In March 22, TotalEnergies said it would stop purchasing oil and petroleum products from Russia.
In the beginning of July, the company announced the gradual suspension of its activities in Russia “for those which do not contribute to the security of energy supply of Europe.”
Company’s partial withdrawal included its oil production facilities in Kharyaga field and gas facilities in Termokarstovoye field as well as other local businesses regarding lubricants and batteries.
TotalEnergies later announced the sale of its remaining 20% interest in the Kharyaga oil project to Zarubezhneft, which was finalized on Aug. 3.
The company agreed to sell to Novatek its 49% interest in Terneftegaz, which operates the Termokarstovoye gas and condensates field in Russia, “on economic terms enabling TotalEnergies to recover the outstanding amounts invested in the field.”
After the Russian authorities have formally finalized their approval about the transaction on Thursday, TotalEnergies and Novatek signed the final sale and purchase agreement of TotalEnergies’ 49% interest in Terneftegaz.
“Closing is expected in September 2022, subject to customary conditions,” the statement read.
By Sibel Morrow
Anadolu Agency
energy@aa.com.tr