Total seeks $15b from Chinese investors for Russian LNG project

French oil major Total has approached Chinese investors to part finance a $15bn Russian gas project, as sanctions on Russia continue to make financing from western markets harder.

China National Petroleum Corporation (CNPC) already has a 20% stake in the project in question – the Yamal Liquefied Natural Gas (LNG) in the Russian Arctic.

Several reports in the French media as well as one in The Wall Street Journal suggest Total would tap its venture partner and Chinese investors as Western banks remain off limits.

Speaking to the Journal, Total chief executive Patrick Pouyanne said: “It’s not an easy task, to be clear. We would have preferred to do it with dollars."

The company is seeking $10bn to $15bn by the end of the second quarter, which should Chinese banks agree, is likely to be euro and yuan denominated.

Total a holds 20% stake in the $27 billion Yamal LNG along with CNPC’s 20% share, with majority of the stake in the hands of Russia’s Novatek.

Pouyanne also said that exploration for shale oil in Siberia, in conjunction with Russian oil company Lukoil, had been “put on hold” owing to EU sanctions on Russia.