LNG News Editor:
TotalEnergies, the leading European oil and gas company and liquefied natural gas developer in Africa and elsewhere, has been forced to defend itself against wild allegations over its business role in Russian LNG and energy.
The Paris-based major, led by Chairman and Chief Executive Patrick Pouyanné, issued a statement after the “serious and unfounded accusations of complicity in war crimes” were levelled against TotalEnergies.
Principles
The company has issued a statement on its principles of conduct regarding its Russian-related businesses to allow people to understand better how the company was in fact acting in a responsible manner as has been possible in the circumstances.
Considering the worsening conflict, TotalEnergies added that it was also now taking new steps.
TotalEnergies reaffirmed its firmest condemnation of Russia's military aggression against Ukraine, which has tragic consequences for the Ukrainian population and threatens peace in Europe.
To act responsibly, as a European company and in accordance with its values, TotalEnergies has defined clear principles of conduct for managing its Russian related business.
TotalEnergies said it would ensure strict compliance with current and future European sanctions, no matter what the consequences on the management of its assets in Russia, and gradually suspend its activities in Russia, while assuring its workforce's safety.
“TotalEnergies recalls that, contrary to remarks made by several commentators, it does not operate any oil and gas fields or any liquefied natural gas (LNG) plants in Russia,” said the company.
The company explained that it was a minority shareholder in a number of non-state-owned Russian companies: Novatek (19.4 percent), Yamal LNG (20 percent), Arctic LNG II (10 percent) and TerNefteGaz (49 percent).
“These companies are managed by their own staff with a limited number of secondees from TotalEnergies,” said the company.
“TotalEnergies is also a 20 percent partner in the Kharyaga joint venture operated by Zarubezhneft,” it added.
“The company did indeed contribute to the construction phase of these companies' projects but has no activity or operational responsibility on those sites,” the company declared.
TotalEnergies stated that it had only 11 secondees in these companies as of February 24, 2022, and only three seconded expatriates are in Russia as of March 22.
“TotalEnergies has thus initiated the gradual suspension of its activities in Russia, while assuring its teams’ safety. Similarly, TotalEnergies has decided to put on hold its business developments for batteries and lubricants in Russia,” it said.
It will also provide no further capital for the development of projects in Russia.
“Concerning the Arctic LNG II project in particular, given the uncertainty created by technological and financial sanctions on the ability to carry out the Arctic LNG II project currently under construction and their probable tightening with the worsening conflict, TotalEnergies has decided to no longer record proved reserves for Arctic LNG II in its accounts and will not provide any more capital for this project,” it stated.
Sanctions
The company went on the explain that the current environment of European sanctions and Russian laws controlling foreign investments in Russia would prevent TotalEnergies from finding a non-Russian buyer for its minority interests in Russia.
“Abandoning these interests without consideration would enrich Russian investors, in contradiction with the sanctions' purpose. In addition, abandoning these minority interests held by TotalEnergies would have no impact on the companies' operations and revenues, since these companies have their own employees and are managed autonomously,” it added.
In accordance with the EU's decisions to maintain at this stage Russian gas supplies, TotalEnergies said it would continue to supply Europe with LNG from the Yamal liquefaction plant within the framework of long-term contracts that it must honor as long as Europe's governments consider that Russian gas is necessary.
