PARIS (Agefi-Dow Jones)–The TotalEnergies group announced on Wednesday that it had provisioned an amount of 4.1 billion dollars in its accounts in connection with its Arctic LNG 2 liquefied natural gas project in Russia following the European Union sanctions against Moscow.
This decision is the consequence of the new sanctions adopted by the European authorities on April 8, which prohibit in particular the export from the territory of the European Union of goods and technologies intended for the liquefaction of natural gas for the benefit of a Russian company, Total said in a statement, stressing that these bans “pose additional risks to the execution capacity of the Arctic LNG 2 project”.
The group had already indicated on February 22 that it had decided to no longer register proven reserves for the Arctic LNG 2 project “given the uncertainties caused by the technological and financial sanctions on the ability to carry out this project currently under construction. construction and their probable rise in power in the face of the aggravation of the conflict”.
TotalEnergies specified that the provision would be recorded in the accounts as of March 31, 2022.
The French oil giant holds a 10% direct stake in this project, located on the Gydan peninsula in Russia, and whose LNG production capacity has been estimated at 19.8 million tonnes per year.
The energy group had decided in February not to conclude or renew contracts for the purchase of Russian oil and petroleum products following the first sanctions against Moscow after the invasion of Ukraine.
For TotalEnergies, Russia represented 13.7 billion dollars, or 10%, of the capital employed at the end of 2021, as well as 17% of its volumes of hydrocarbons produced and 21% of its reserves, excluding Artic LNG 2.
The volumes are mainly linked to Novatek, the Russian producer in which TotalEnergies is a 19.4% shareholder and which has a 60% stake in Artic LNG 2.
-Jerome Batteau, Agefi-Dow Jones; +33 (0)1 41 27 47 99; [email protected] ed: VAT
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April 27, 2022 16:03 ET (20:03 GMT)