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Russian watchdog reports technology violations at Total project

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MOSCOW, March 29 (RIA Novosti) - A Russian watchdog Thursday reported egregious licensing and technological violations at a Total-led oil project in northern Russia.

The Rostekhnadzor agency said it uncovered the violations during an inspection of the Kharyaga oilfield, in Russia's Yamal-Nenets autonomy, which the French energy giant is developing under a production-sharing agreement (PSA) with the Russian government.

The inspection was carried out both at the site and at Total's Moscow office.

Rostekhnadzor said it would initiate disciplinary proceedings against Total for failing to comply with industrial safety rules, and urged the group to apply for licenses to operate flammable industrial facilities and handle hazardous waste.

Total spokeswoman Maria Zoubkova told RIA Novosti the company would issue a comment soon.

Total holds a controlling, 50% stake in a consortium set up to run the Kharyaga project, which also includes Norway's Hydro (40%) and the Nenets Oil Company (10%), controlled by the regional government.

The French company, which is facing a second probe into its compliance with the technological and environmental requirements of its operating license for the lucrative Kharyaga oilfield, is not the only Western operator to have come under the scrutiny of Russian regulators in recent months.

On Wednesday, Russia's environmental watchdog launched a probe into alleged environmental violations at the Sakhalin I hydrocarbon project, run by U.S. giant ExxonMobil off Russia's Pacific Coast.

Months of pressure on Royal Dutch Shell, which was in charge of the Sakhalin II gas project, culminated last year in the purchase by Russia's state-controlled energy giant Gazprom of 50% plus one share in the project.

The Russian-British joint venture TNK-BP also received a warning about its license for the giant Kovykta natural gas deposit, in East Siberia, over an alleged failure to meet its obligations to supply nearby areas with gas.

Analysts have said the raids are part of the Kremlin's drive to regain control of the country's vast mineral resources.

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