Total Resolves Tax Dispute Over Kharyaga PSC

Total reports the resolution, out of court and as a result of constructive negotiations with representatives of the Russian Federal Government and Administration of the Nenets Autonomous Region, of all issues in regards to the Kharyaga Production Sharing Contract which were the subject of an international arbitration in Stockholm.

Within this framework the Production Sharing Agreement Joint Committee, the managing body of the Kharyaga project consisting of representatives of the Federal Government, Nenets Autonomous Region Administration and partnered companies approved the relevant past annual work programs as well as past budgets and past cost recovery. As a result, the Russian Tax Authorities have revoked their tax claims.

Total is the operator of the field with a 50% participating interest along side Norsk Hydro also with a 40% interest, and the Nenets Oil Company with a 10% interest.