NOVATEK, CNPC And Chinese Banks Conclude Memorandum On Project Financing For Yamal LNG

Sep 10, 2013, 10:17 ET from OAO NOVATEK

MOSCOW, Sept. 10, 2013 /PRNewswire/ -- Today, OAO NOVATEK, China National Petroleum Corporation and a consortium of Chinese financial institutions concluded a memorandum on project financing for the Yamal LNG project.

According to the memorandum, the Chinese commercial banks – China Development Bank Corporation, Industrial and Commercial Bank of China, Bank of China and China Construction Bank, – will consider actively participating in the external project financing transaction of Yamal LNG project.

Final documentation with the Chinese commercial banks will be executed simultaneously with all of the other lenders participating in project financing of Yamal LNG, including, but not limited to, foreign export credit agencies, international and Russian commercial banks and other financial institutions.

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".