RusEnergy

23 January 2007 - Upstream onLine - Russian state-owned oil company Zarubezhneft denied a report today that it wanted to take a stake in the Kharyaga oil project, which is operated by Total of France. "Zarubezhneft is not planning to take a stake in the project to develop the Kharyaga field," a company spokesman said. Russia's Kommersant newspaper earlier cited unnamed sources as saying that Zarubezhneft wanted to take a 20% stake in Kharyaga, based in Western Siberia. Total has 50% of the project and Norway's Norsk Hydro has 40%. The remaining 10% is held by the local government. Russia has also an option to take another 20% in the project and had earlier granted it to Lukoil. However, the company has never taken the stake, saying it saw little profit from participating in the field. Kharyaga is one of Russia's three production sharing agreements. Russia has put all three under pressure during the last year by threatening to withdraw licences for failing to comply with contract terms and sending officials to inspect sites for possible breaches of environmental and safety rules. Analysts say the campaign of pressure is designed to persuade the foreign companies involved in the PSAs to agree to less favourable terms and allow state-owned companies into the projects, Reuters reported.