NOVATEK equity stake sold to GAZPROM
Moscow, 29 September 2006. OAO NOVATEK today announced the closing of the transaction for the sale of 19.4% of the Company’s outstanding ordinary shares, to ОАО Gazprom, represented by ZGG GmbH, by the Company’s main shareholders, OOO LEVIT and SWGI Growth Fund (Cyprus) Limited.
As a result of the transaction, Gazprom representatives will have two seats on the Board of Directors, which in accordance with the Company’s existing Charter provides the new shareholder representing Gazprom with sufficient rights to participate in management of the Company’s activities and the equity stake owned by Gazprom and its affiliated entities will not exceed at any time 19.9% of the Company’s outstanding shares.
The Parties to the transaction anticipate further expansion of NOVATEK’s activities in developing its existing fields and growing its hydrocarbon resource base and an opportunity for NOVATEK to be involved in regional gasification programs.
NOVATEK believes the addition of Gazprom as a strategic investor will enhance the Company’s ability to fully develop its hydrocarbon resource base and realize its strategic objective of maximizing production and processing of hydrocarbons.
PAO NOVATEK is the largest independent natural gas producer in Russia, and in 2017, entered the global LNG market by successfully launching the Yamal LNG project. Founded in 1994, the Company is engaged in the exploration, production, processing and marketing of natural gas and liquid hydrocarbons. Upstream activities of the Company’s subsidiaries and joint ventures are concentrated mainly in the prolific Yamal-Nenets Autonomous Region, which is the world’s largest natural gas producing area and accounts for approximately 80% of Russia’s natural gas production and approximately 15% of the world’s gas production. NOVATEK is a public joint stock company established under the laws of the Russian Federation.