Moscow, 24 June 2009. OAO NOVATEK (“NOVATEK”) and Total SA (“Total”), today have signed a Heads of Agreement (the “Agreement”) establishing the framework for joint cooperation in exploring and developing NOVATEK’s Termokarstovoye gas condensate field (the “Project”). The Agreement was signed by Leonid Mikhelson, Chief Executive Officer of NOVATEK, and Christophe de Margerie, Chief Executive Officer of Total, during a recent meeting in Moscow.
The Agreement provides for the establishment of a joint venture through the acquisition, by Total, of a 49% participation interest in Terneftegas LLC, a wholly-owned subsidiary of NOVATEK and holder of the license for geological exploration and production of gas and gas condensate at the Termokarstovoye field. Under the terms and conditions of the Agreement, the joint venture has two years to complete exploration works and prepare a field development plan, with a final investment decision to proceed forward with the Project taken in 2011.
The closing date for the transaction is subject to the final approval obtained from the Federal Anti-Monopoly Service.
According to NOVATEK’s CEO, Leonid Mikhelson, “We welcome Total’s participation in the Project. Their technological capabilities will complement our experience developing complex geological assets and facilitate the effective development of the remote Termokarstovoye field”.
Note: The Termokarstovoye gas condensate field was discovered in 1986 and is located in the Krasnoselkup district of the Yamal-Nenets Autonomous Region approximately 250 kilometers to the east of Tarko-Sale. The field’s reserves according to the Russian ABC1+C2 classification amount to 47.3 bcm of natural gas and 10.3 mmt of liquids.
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.