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Novatek sells 20% stake in Yamal LNG to CNPC

LNG Industry,

Russian natural gas company Novatek has sold a 20% interest in the Yamal LNG project, Russia to CNODC, an offshoot of China National Petroleum Corporation (CNPC).

Novatek now holds a majority 60% stake in the project, while Total and CNPC account for the remaining 40% with a 20% interest each.

The entrance of CNPC into the project envisages a payment for the participation interest, proportional reimbursement of past costs of Novatek as well as disproportional financing for the project through contributions to the charter capital of Yamal LNG and shareholder loans.

Leonid V. Mikhelson, Chairman of the Management Board of Novatek, said: “The closing of the deal with CNPC is the culmination of our hard work and collective efforts. Our partners in Yamal LNG are now two well-established international companies with extensive expertise in the execution of large-scale oil and gas projects. We believe that the current shareholder structure of Yamal LNG allows us to successfully and timely complete the project which has already entered into the active construction stage.”

The project itself

The Yamal LNG project will consist of a 16.5 million tpa liquefaction plant based on the feedstock resources of the South-Tambeyskoye field. According to the PRMS reserve standards, reserves of the South-Tambeyskoye field as of late December 2012 were appraised at 907 billion m3 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). The final investment decision (FID) for the project was approved on in December 2013.

Other news

Yesterday, VINCI was awarded a contract with Yamal LNG to perform the engineering, procurement, supply, construction and commissioning of four cryogenic full-containment LNG storage tanks with a capacity of 160 000 m3

Adapted from press release by Ted Monroe

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