PARIS (AFP) - French oil group Total said it had signed an agreement to acquire a 25 percent stake plus one additional share in Russian natural gas producer Novatek, without disclosing the financial terms of the deal.
"Total has signed an agreement setting out the terms of the Group's plan to purchase a 25 percent stake plus one share in the Russian company OAO Novatek," Total said in a statement.
The French business daily Les Echos reported Wednesday that Total would acquire up to 25 percent in Novatek for an amount less than one billion dollars (811,928 million euros).
Novatek, created in 1994, operates three gas fields in Russia, having proved or provable reserves of around four billion barrels of oil equivalent, Total said.
"Total will bring its expertise in the field of production, transport and processing hydrocarbons, which will assure, within the best conditions, ongoing growth in hydrocarbon production and the construction of new process installations on Russian soil," said Total chief executive Thierry Desmarest.
Total said it had submitted the documents relating to the acquisition of the stake in Novatek to the Russian competition authorities for approval.