Press Releases and Events
NOVATEK to report full year 2011 IFRS results
Moscow, 02 March 2012. OAO NOVATEK (“NOVATEK” and/or the “Company”) announced today that it will release the Company’s audited consolidated financial statements for the full year 2011 on 7 March 2012. The Company would like to draw the attention of investors and analysts to certain material events that occurred during the year ended 31 December 2011 that had a direct impact on our consolidated financial results for the period.
On 5 October 2011, the Board of Directors of OAO NOVATEK approved the sale of a 20 percent stake in OAO Yamal LNG, the Company’s wholly owned subsidiary, to TOTAL S.A., the strategic partner in the Yamal LNG project.
On 6 October 2011, the Company entered into a Sales contract to dispose of a 20 percent stake in OAO Yamal LNG and signed a new shareholder’s agreement (the “Shareholders’ agreement”) with TOTAL E&P YAMAL SAS, an affiliate of TOTAL S.A., establishing the framework for joint cooperation in exploring and developing the South-Tambeyskoye field (held by Yamal LNG) located in the YNAO.
As of the reporting date, the Company retained an 80 percent interest in Yamal LNG after the aforementioned transaction; however, the Shareholders’ agreement stipulates that key strategic, operational and financial decisions are subject to approval by eight out of nine members of the Board of Directors as previously reported. As a result of this transaction, the Company’s effective control over Yamal LNG ceased on 6 October 2011, following which the Company has determined Yamal LNG to be a joint venture and accounts for it under the equity method.
Based on the Shareholders’ agreement and the provisions of the Sales contract, the Group recorded the disposal of a 20 percent interest in Yamal LNG realizing a total gain of approximately RR 62.8 billion, net of associated income tax of RR 117 million in its consolidated financial statements for the year ended 31 December 2011. The gain includes both the profit on the sale and a remeasurement of the Group’s retained investment in Yamal LNG at fair value at the date of losing control.
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.