Press Releases and Events
NOVATEK and Gazprom Neft equalize their stakes in SeverEnergia
Moscow, 1 April 2014. The Board of Directors of OAO NOVATEK (“NOVATEK” or the “Company”) resolved yesterday to approve several transactions, which will enable NOVATEK and OAO Gazprom Neft to equalize their respective equity stakes in the SeverEnergia joint venture.
NOVATEK currently holds 59.8% of the joint venture, with Gazprom Neft holding the remaining 40.2% equity stake. The agreement stipulates that NOVATEK will sell a 9.8% equity stake in SeverEnergia for a cash payment of USD 980 million.
Chairman of the Management Board of NOVATEK, Leonid V. Mikhelson commented: “Our decision to sell this equity stake and equalize our respective ownership interest is based on our long-term strategic partnership with Gazprom Neft and a successful track record of asset management on a parity basis. Moreover, it confirms the existing agreements on sales of natural gas and liquid hydrocarbons produced by SeverEnergia”.
SeverEnergia via its fully consolidated subsidiary Arcticgas holds the development and production licenses for the Samburgskiy, Yevo-Yakhinskiy, Yaro-Yakhinskiy and North-Chaselskiy license areas.
As at 1 January 2014, recoverable reserves of SeverEnergia under the ABC1+C2 categories of the Russian reserve classification were estimated at 14.5 billion barrels of oil equivalent, including 5.5 billion barrels of liquid 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.