Total is taking the final steps for Yamal LNG Project funding

French oil and gas company Total is in the final stage of negotiating the equivalent of $4 billion of financing with Russian banks to fund the Yamal LNG project, the company’s CFO told analysts on April 27.
Total’s CEO Patrick Pouyanne had expected to get the funds by the end of last year but international sanctions on Russia have hampered fundraising efforts.
The total investment needed for the Russian Yamal project, which is 50.1% owned by Novatek and 20% owned by Total, is estimated at $27 billion. Both the Russian and Chinese finance deals could be signed as early as this week, de La Chevardiere told analysts. He added that the figures were in dollar equivalent and dollars won’t finance the project because of the sanctions.
Asked about M&A opportunities in the oil and gas sector in the current price downturn, Total’s finance head said prices were still too high for acquisitions to make commercial sense and the company was looking instead at assets such as reserves that it could acquire and develop.
De La Chevardiere said that Total expected to make a final investment decision on its Uganda project next year after the land-locked country said it will build a pipeline for its oil through Tanzania rather than Kenya.