NOVATEK sells 20% stake in Yamal LNG to China's CNPC
NOVATEK and the China National Petroleum Corporation (CNPC) signed an agreement for the sale of a 205 stake in Yamal LNG project (the construction of a LNG plant). The agreement was reached on the sidelines of the G-20 Summit in St. Petersburg, NOVATEK said Thursday in a press release.
The document was signed after a meeting of Russian President Vladimir Putin and Chinese President Xi Jinping.
The transfer of title to the equity share is subject to receipt of necessary regulatory approvals and expected to be completed by 01 December 2013. Following completion of the deal, the shareholder structure of OAO “Yamal LNG” will be as follows: OAO NOVATEK (60%), Total S.A. (20%) and CNPC (20%).
Chairman of the Board of Directors of CNPC, Zhou Jiping stated “We are satisfied with the progress of our cooperation. The signed agreement is an important step in the development of energy projects providing the fast growing Chinese economy with stable supplies of clean energy resources”.
Chairman of the Management Board of NOVATEK, Leonid V. Mikhelson stated “CNPC’s entrance in Yamal LNG is an important milestone for the Project. We are pleased to welcome a new, strong partner who will contribute its capabilities and resources to the successful implementation of the Project”.
After closing the deal Yamal LNG shareholders board composition is as follows: OJSC NOVATEK (60%), Total (20%), CNPC (20%).
Yamal LNG project includes the construction of an LNG plant with annual capacity of 16.5 million tonnes based on the feedstock resources of the South-Tambeyskoye field. According to the PRMS reserve standards, the proven and probable reserves of the South-Tambeyskoye field were 907 billion cbm of natural gas, as of 31 December 2012. The Project also requires the construction of transport infrastructure including a seaport and an airport located at Sabetta (north-east of the Yamal Peninsula).
OAO NOVATEK is Russia’s largest independent gas producer and the second-largest natural gas producer in Russia. Founded in 1994, the Company is engaged in the exploration, production, processing and marketing of natural gas and liquid hydrocarbons. The Company’s upstream activities are concentrated in the prolific Yamal-Nenets Autonomous Region, which is the world’s largest natural gas producing area and accounts for approximately 90% of Russia’s natural gas production and approximately 17% of the world’s gas production. NOVATEK is an open joint stock company established under the laws of the Russian Federation.
CNPC is China's largest oil and gas producer and supplier, as well as one of the world's major oilfield service providers and a globally respected contractor in engineering construction. CNPC has presence in 70 countries.