Total to go into Russia?

Despite the poor economic and political governance of Russia which dissuades foreign investment, the sheer size of Russia’s reserves are such that Western supermajors will always be willing to participate in Russian projects to some degree, as this report shows:

French giant Total has offered Russian gas giant Gazprom stakes in three projects in return for a 25% slice of the huge Shtokman gas project.

Total was one of five companies shortlisted last month by Gazprom as potential partners in the Shtokman development, in the Barents Sea.

The Shtokman project is likely to cost more than $20 billion, and analysts said Gazprom intends to get its foreign partners to put up about 30% of the money, with the rest coming from debt.

Let’s hope this French excursion into Russia fares better than that of 1812.

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