Total S.A. announced that it has signed a series of agreements with Tellurian, Inc. “strengthening the partnership between the two companies to develop the Driftwood LNG project” located in Calcasieu Parish, La. According to the press release, the agreements include:

• A Heads of Agreement (HoA) upon which Total will invest in Driftwood Holdings and will offtake 2.5 million tons per annum (mtpa) of LNG. More precisely:

– Total will make a $500 million equity investment in the Driftwood LNG and purchase 1 mtpa of LNG from the proposed project;

– Tellurian and Total will also enter into a sales and purchase agreement (SPA) for a further 1.5 mtpa of LNG from Tellurian Marketing’s LNG offtake volumes from the Driftwood LNG. The SPA will be for the purchase of LNG free on board (FOB) for a minimum term of 15 years, at a price based on the Platts Japan Korea Marker (JKM).

• An Agreement whereby Total will purchase around 20 million shares of Tellurian common stock for an amount of 200 million US dollars.

The agreements are subject to the relevant regulatory approvals and to the Final Investment Decision (FID) of the Driftwood LNG project.