Press Releases and Events
NOVATEK closes sale of interest in Yamal LNG to TOTAL
Moscow, 6 October 2011. OAO NOVATEK (NOVATEK and/or the Company) announced today the closing of the sale of a 20% participation interest in Yamal LNG by TOTAL through the Company’s wholly owned subsidiary NOVATEK North-West.
In March 2011, the two companies signed a Memorandum of Cooperation recognizing TOTAL as the strategic partner in the Yamal LNG project (the “Project”), which is wholly owned by Yamal LNG. The acquisition received the necessary approvals from the Russian Federation’s Strategic Investment Committee and Federal Anti-Monopoly Service in July and August 2011 allowing the two companies to close the deal.
Total consideration includes a payment for the 20% participation interest as well as financing for the Project through the charter capital of Yamal LNG and disproportional shareholder loans.
The Yamal LNG Project includes the construction of production, storage and loading facilities for liquefied natural gas (LNG) based on the resources of the South-Tambeyskoye field.
As of 31 December 2010, the South-Tambeyskoye field’s proved reserves under SEC standards totaled 418 billion cubic meters of natural gas and 15 million tons of gas condensate while the field’s proved plus probable reserves appraised in accordance with PRMS methodologies totaled 802 billion cubic meters of natural gas and 31 million tons of gas condensate.
The Project calls for the construction of a 15 million ton per annum LNG plant and production capacity for up to one million tons of gas condensate per annum. The launch of the first train of the LNG plant is scheduled for 2016.
PAO NOVATEK is one of the largest independent natural gas producers 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 Area, 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.