MOSCOW, Sept. 5, 2013 /PRNewswire/ -- Today, in the presence of the President of Russian Federation Vladimir Putin and the Chairman of People's Republic of China Xi Jinping, OAO NOVATEK ("NOVATEK") and China National Petroleum Corporation ("CNPC") concluded an agreement on purchase of a 20% equity share in the Yamal LNG project ("Project") by CNPC.
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."
Yamal LNG project envisages the construction of an LNG plant with annual capacity of 16.5 million tons per annum 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 as of 31 December 2012 were appraised at 907 billion cubic meters of natural gas. The Project also requires the construction of transport infrastructure including a sea-port 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, NOVATEK is engaged in the exploration, production, processing and marketing of natural gas and liquid hydrocarbons. Its 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. NOVATEK's shares and GDRs are listed on MICEX-RTS Stock Exchange in Russia and the London Stock Exchange (LSE), respectively, under the ticker symbol "NVTK."
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.
SOURCE OAO NOVATEK