Orrick Advises Russia’s Zarubezhneft in Acquisition of Majority Stake in Kharyaga Arctic Oilfield


Orrick advised Zarubezhneft, a major Russian state-owned oil company, on its acquisition of a majority stake in the Kharyaga oil field from Total, France’s largest oil and gas producer. 

Total agreed to divest half of its stake in the Kharyaga production sharing agreement (one of only three such agreements in Russia), transferring a 20 percent share to Zarubezhneft. Subject to the approval of Russian authorities, Zarubezhneft will now hold a 40 percent interest in the project, alongside Total (20 percent), Statoil (30 percent) and Nenets Oil Company (10 percent). In a first for Russia, the farm-out transaction also involved the negotiation of a bespoke operating transfer agreement, transferring the project’s operatorship to Zarubezhneft. 

A cross-practice team from our Moscow, London and Paris offices advised Zarubezhneft in the acquisition. The team was led by corporate partner Konstantin Kroll and included banking and regulatory managing associate Svetlana Gareeva and energy associate Gabin Gabas.