Keep up with the news by installing RT’s extension for . Never miss a story with this clean and simple app that delivers the latest headlines to you.

 

Total and Lukoil in talks to jointly develop Russian shale

Published time: March 28, 2014 11:24
Reuters / Viktor Korotayev

Reuters / Viktor Korotayev

France’s Total is reportedly in talks with Russia’s Lukoil to develop a shale formation in the Russian Urals – estimated to be the biggest in the world. It's evidence western businesses want to work with Russia, casting off political talk of sanctions.

Russia’s largest private company Lukoil is discussing a joint venture with Total over so-called “difficult oil” in its giant but still unproven Bazhenov formation, the Financial Times (FT) cites sources familiar with the matter.

The deposit holds a huge portion of Russian shale gas and oil, and is the biggest in the world according to the US Department of Energy.

Recent threats by western politicians to impose sanctions against Russia haven’t affected the plans of the two companies to cooperate, as Total and Lukoil were discussing a tie-up before Crimea became a part of Russia.

Another of Russia’s big business allies - Siemens - said earlier this week that its investment in the country, including cooperation with Russian Railways and Gazprom, will go on as scheduled.

Until now Lukoil has always chosen to develop its assets in Russia alone, which means sealing the deal with Total would mean a shift in its strategy.

“Lukoil is the only large Russian oil company without a major western partner,” as the FT quotes Karen Kostanian, oil and gas analyst at Bank of America Merrill Lynch in Moscow.

Total is now represented in Russia through a 16 percent stake in Novatek, the country’s second biggest gas producer after Gazprom. Now the investment is under scrutiny, as Novatek CEO Gennady Timchenko was included on the US sanctions list. Timchenko owns 23 percent of Novatek.

Comments (24)

 

RockyRacoon 31.03.2014 14:08

Capitalism is organized crime. I thought Russia learned this a long time ago. Maybe just not correct solution for the time. 1917 was a little early to socialize industry which did not yet exist. Premature. Now is the time for an Economic Bill of Rights for Russian's modelled on FDR. legislation that he didn't get to pass before his death. There would have been no cold war I think if he had. Perhaps. Also no bomb on Japan if he lived. It was only used to keep Russia out of further Eastern Expansion even though they asked and got it from Stalin if they wanted. That was the start of the cold war.

 

RockyRacoon 31.03.2014 14:04

How long before Al Qiada frees it up so they can take 100% like they did in Libya?

 

RockyRacoon 31.03.2014 14:03

Those injection sites are like a herion addict using impure street dope cut with draino using a unsterilized syringe that is contaminated with HCV AND HIV. That is what it is doing to the American Environment-Do you care about your own. Russia has some clean-ups of their own to undertake. Poor environmental record.

View all comments (24)
Add comment

Authorization required for adding comments

Register or

Name

Password

Show password

Register

or Register

Request a new password

Send

or Register

To complete a registration check
your Email:

OK

or Register

A password has been sent to your email address

Edit profile

X

Name

New password

Retype new password

Current password

Save

Cancel

Follow us

Follow us