French energy company Total strikes deal with Russia's Lukoil to explore for shale oil
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French energy company Total SA is hooking up with Russia's largest private oil company to explore and develop a huge Siberian shale oil field.
The deal signed Friday with Russia's Lukoil comes despite European and U.S. sanctions and anger over Russia's role in Ukraine's political crisis.
Total says in a statement that the two will set up a joint venture to develop the Bazhenov oil formation in western Siberia. It says Lukoil will have 51 percent of the venture and Total 49 percent.
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The statement gives no value for the deal. The ITAR-Tass news agency quotes Lukoil CEO Vagit Alekperov as saying the companies will invest $120 million to $150 million.
France has been more cautious about sanctions against Russia than the United States or some European countries.