OAO Novatek has announced that it has concluded a framework agreement with Silk Road Fund (SRF) that will see SRF acquire a 9.9% equity stake in the Yamal LNG project.
The framework agreement was signed in the presence of the President of Russia, Vladimir Putin, and the President of China, Xi Jinping.
According to the agreement, the transaction is scheduled to close after the satisfaction of stipulated conditions precedent, including the receipt of all necessary approvals. Following the completion of the deal, Novatek will hold a 50.1% stake in OAO Yamal LNG, while Total (20%), CNPC (20%) and SRF (9.9%) will be the other shareholders.
President of SRF, Wang Yanzhi, said: “We consider Yamal LNG to be one of the most prospective and competitive LNG projects in the world. Such observation supports our interest in becoming its shareholder. We hope our entrance into the project will facilitate an expedited closing of the project’s general external financing, as well as contribute to further development of the Chinese-Russian cooperation in the energy sector”.
Chairman of the Management Board of Novatek, Leonid V. Mikhelson, added: “We welcome SRF’s entrance into the Yamal LNG project as another step forward in the mutually beneficial cooperation with our Chinese partners in the development of gas projects in the Russian arctic region”.
Edited from press release by Callum O'Reilly