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TotalEnergies to Book $3.7 Billion Impairment on Novatek Stake, Withdraws Directors

By Giulia Petroni

 

TotalEnergies SE will book an impairment of around $3.7 billion in the fourth quarter as it will no longer equity account for its stake in Russian natural gas producer Novatek.

The French major said on Friday that it has also decided to withdraw its representatives from Novatek's board with immediate effect as they were no longer in a position to fully carry out their duties.

The company holds a 19.4% stake in Novatek, but hasn't been able to sell it as it is forbidden to sell assets to one of Novatek's main shareholders, who is under international sanctions following Russia's invasion of Ukraine, it said.

TotalEnergies will no longer book reserves for its interest in Novatek, with an impact on reported proved reserves at the end of 2021 of 1.7 billion of barrels, it said. Yet, the life duration of the company's proved reserves will remain above 11 years of production.

 

Write to Giulia Petroni at giulia.petroni@wsj.com

 

(END) Dow Jones Newswires

December 09, 2022 04:03 ET (09:03 GMT)

Copyright (c) 2022 Dow Jones & Company, Inc.

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