Russia Bets on Cooperation with Total

Russia’s President Vladimir Putin met with Total’s CEO Patrick Pouyanne, reaffirming the importance of the country for the growth prospect of the French company.  

“Total has been one of our priority partners for many years now” Putin said during the meeting. 

The Russian President reported on the OPEC meeting, confirming that the block of countries would not cut production and prices would “respond accordingly and fall a little.” 

“The gas deposits of Russia’s Yamal-Nenets District alone hold reserves of nearly 1.5 trillion cubic metres of gas. There are other equally important projects elsewhere. In the former case, the cooperation is with Novatek, but you have joint projects with Rosneft, Gazprom and other big Russian companies too, including projects in third countries.”

Also on Friday, Rosneft published a note announcing a Term Sheet setting the main terms and conditions of the purchase of 16.67% share in a refinery located in Schwedt, Germany (PCK Raffinerie GmbH). Rosneft will buy Total’s shares, jumping to the driving seat.  

Ruhr Oel GmbH controls 37.5% of the refinery. The company is a joint venture between BP and Rosneft. 

“This agreement is reflective of the level of trust, long-term commitment and mutual benefit in the relationships between Total and Rosneft. It proves the effectiveness of the European-Russian energy partnership in that it delivers added value to all companies and countries involved. As for Rosneft, this deal means a strengthening of its position in one of Europe's most efficient and effective refineries and an opportunity to serve the end-customers in its most important market. Once the deal is closed, Rosneft together with ROG will manage close to 55% of the refinery's ownership” Head of Rosneft Igor Sechin commented in a press release.