Deal Insight

Total acquires a 12.09% interest in NOVATEK

This report is currently unavailable

Contact us

Submit your details to receive further information about this report.

For details on how your data is used and stored, see our Privacy Notice.

- Available as part of a subscription
- FAQ's about online orders

02 March 2011

Total acquires a 12.09% interest in NOVATEK

Report summary

Total and NOVATEK have formed a strategic relationship that will boost Total's mid to long-term growth outlook, and give NOVATEK access to the Majors' global industry experience and know-how. The companies have signed 'Memoranda of Cooperation' covering two separate transactions: 1) Total will acquire a 12.08% stake in NOVATEK for US$4 billion, with plans to increase this to 19.40% within 36 months; 2) Total will gain a 20% stake in Yamal LNG - a proposed greenfield LNG ...

Table of contents

  • Executive summary
  • Transaction details
    • 1) Equity stake in NOVATEK
      • Technical resource base offers upside
    • Domestic gas pricing reform is a key valuation sensitivity
    • Significant hurdles to a 2016 start-up
    • Progress will require a politically backed shift in dynamics
    • Total boosts near-term growth and further expands long-term opportunity set
      • Equity stake in NOVATEK provides Total with another production growth stream
      • Deal adds to Total's range of LNG growth options but lack of control is a concern
      • Total's appetite for above-ground risk appears undiminished
  • Oil & gas pricing and assumptions

Tables and charts

This report includes 8 images and tables including:

  • Deal analysis: Table 1
  • Deal analysis: Table 2
  • Oil & gas pricing and assumptions: Table 1
  • Oil & gas pricing and assumptions: Table 2
  • NOVATEK and Total Russian assets
  • Upstream assets: Table 1
  • Wood Mackenzie forecast of NOVATEK production, plus best-case Yamal LNG upside* (gross)
  • Impact of NOVATEK equity on Total production outlook and resource base *

What's included

This report contains:

  • Document

    Total acquires a 12.09% interest in NOVATEK

    PDF 900.02 KB