MOSCOW, November 18 (RIA Novosti) - French oil company Total, which operates the Kharyaga oil deposit in the northern part of European Russia, must provide the Russian Industry and Energy Ministry with a feasibility study justifying the need for increased spending for development of the deposit by November 25, a ministry statement said.
An order was handed down to the company by a subcommittee of the joint committee on financial operations for the Kharyaga production-sharing agreement.
The French company forecasts a change in cost estimates of more than 10%.
The Kharyaga production-sharing agreement was signed in 1995. Total owns a 50% stake in the project along with Norway's Hydro (40%) and Russia's Nenetskaya Neftyanaya Kompaniya (Nenets Oil Company) (10%).
In 2002, an agreement was signed stipulating that Russian oil major LUKoil would acquire a 20% stake in the project. However, the agreement has not yet come into effect.
In total, 45 million metric tons of oil is to be produced during the 33-year term of the agreement.
