Total, Lukoil In Discussions Over Shale Deal In Russia: FT

(RTTNews) - French oil giant Total SA (TTA.L, TTFNF.PK, TOT) is planning to collaborate with Russian private energy company Lukoil on its shale oil projects in Russia, as the country is looking to tap unconventional resources to compensate for falling output at aging fields in Siberia, the Financial Times reported.

Lukoil is exploring the unproven Bazhenov formation, which holds the majority of Russia's shale oil reserves. This is estimated to be the biggest in the world by the US Department of Energy.

Citing people familiar with the matter, the report said the two companies are discussing a joint venture to co-operate on the production of "difficult oil" in Russia. Difficult oil is a category which includes shale oil.

Total already has presence in Russia through its 16 percent stake in Novatek, the country's largest gas producer after Gazprom.

The talks had begun before Russia's annexation of Crimea and the sanctions that followed. The discussions also highlight the fact that some companies are still interested in business ties with Russia despite the country's political relations with the international community.

Joe Kaeser, chief executive officer of German conglomerate Siemens (SI), met president Vladimir Putin on Wednesday in Moscow and promised to continue the company's investments in Russia and its co-operation with Gazprom.

US and EU imposed sanctions on Russia following the annexation, and U.S. President Barack Obama said international order is being tested by Russia's action.

Total shares closed up 0.8 percent in Paris on Thursday at 47.89 euros.