24-10-02 Russia's largest oil firm LUKOIL said it had finally obtained a 20 % stake in a northern field from TotalFinaElf and Norway's Norsk Hydro after a year-long row with local authorities.

LUKOIL had agreed with Total and Norsk Hydro that it would join their project to develop Russia's remote northern Kharyaga oil deposit two years ago and obtained approval from the Russian government last November. But the deal was put on hold by local authorities, whose approval is also needed under Russian legislation. LUKOIL said the governor of the Yamal-Nenets region finally signed the deal.
"We are deeply satisfied by improving cooperation between LUKOIL and the administration... and are confident the signing of the deal will give a new impulse to the Timan-Pechora oil province development," LUKOIL said.

TotalFinaElf and Norsk Hydro, holding 50 % and 40 % respectively in Kharyaga oil deposit, each earlier agreed to sell 10 % of their holdings to LUKOIL.
The Kharyaga production sharing agreement (PSA), signed in 1995 and producing 30,000 bpd, is one of Russia's few successful oil projects with foreign investors. The field's recoverable reserves are estimated at 97 mm tons of oil (710 mm barrels).