Russia: Total Combines Efforts with Lukoil to Explore and Develop Tight Oil in the Bazhenov

  Russia: Total Combines Efforts with Lukoil to Explore and Develop Tight Oil
  in the Bazhenov

Business Wire

PARIS -- May 23, 2014

Regulatory News:

Total (Paris:FP) (LSE:TTA) (NYSE:TOT) signed today an agreement with Lukoil
creating a joint venture (JV) to explore and develop the tight oil potential
of the Bazhenov play in Western Siberia. Total will hold 49% of the JV and
Lukoil 51%. This agreement finalizes the memorandum of understanding signed
between the two companies in December 2013.

The JV will assess the technical feasibility of developing the tight oil
potential of the Bazhenov formation initially on 4 licenses covering an area
of 2,700 km² in Khanty-Mansi Autonomous District. Seismic acquisition will
start in 2014 and exploration drilling will follow in 2015. Total will
contribute its Lyaminskiy 3, Vostochno-Kovenskiy and Tashinskiy licences to
the JV while Lukoil will add the Galyanovsky license.

“Total’s entry into the Bazhenov play, one of the world’s largest shale oil
formations, reinforces our position in non-conventional hydrocarbons where the
Group has developed significant experience with its numerous projects ”,
outlined Christophe de Margerie, Total’s Chairman and CEO. “Our international
expertise leveraged with Lukoil’s experience in the region provides a balanced
partnership and an excellent basis from which to appraise the huge potential
of this Western Siberian play.”

Total Exploration & Production in Russia

Total has been present in Russia for over two decades. In 2013, the Group’s
equity production was 207,000barrels of oil equivalent per day. This
production comes from the onshore Kharyaga field (Total 40%, operator),
located in the Nenets autonomous district, and through Total’s share in
Novatek (17% at the end of 2013), which produces more than 10% of Russia’s gas
In addition, Total and Novatek are partners in the Yamal LNG project, located
in the Yamalo-Nenets Autonomous District, and in the Termokarstovoye gas and
condensate field, which are both currently under development.


Total is one of the largest integrated oil and gas companies in the world,
with activities in more than 130countries. The Group is also a first rank
player in chemicals. Its 98,800employees put their expertise to work in every
part of the industry – exploration and production of oil and natural gas,
refining and marketing, new energies, trading, and chemicals. Total is working
to help satisfy the global demand for energy, both today and tomorrow.

Capital : 5944195 400 €
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