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Interfax.com  |  Interfax news  |  Total signs $400 mln contract with Globalstroy...


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February 25, 2011 14:27

Total signs $400 mln contract with Globalstroy for Kharyaga phase three

MOSCOW. Feb 25 (Interfax) - France's Total has signed a contract worth $400 million with Globalstroy Engineering for phase three of the Kharyaga production-sharing project, Total said in a statement.

This is the Kharyaga project's biggest contract so far.

Phase three involves bringing new reserves on stream, sustaining daily output of 30,000 barrels a day (1.4 million tonnes of oil per year) and achieving 95% associated gas utilization.

Globalstroy-Engineering will design, procure, supply, build and commission installations for the modernization of the central production facility and will build a technological complex to treat associated gas.

The Kharyaga field's associated gas has high sulfur content and it is thought phase three of the project will also involve building a plant capable of separating this from the gas and producing 5,000 tonnes of granulated sulfur per year. The cost of this plant has been estimated at $200 million.

The contract with Globalstroy enters into effect on March 1, 2011, and will take 26.5 months to complete.

The Kharyaga production-sharing agreement was signed back in 1995.

Total is the project operator with 40%, Russia's Zarubezhneft has 20%, StatoilHydro - 30% and OJSC Nenets Oil Company - 10%.

Pr

(Our editorial staff can be reached at eng.editors@interfax.ru)

/Interfax/
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