At the 22nd St Petersburg International Economic Forum, in the presence of the President of Russia Vladimir Putin and the President of France Emmanuel Macron, Leonid Mikhelson (Chairman of the Management Board of Pao Novatek) and Patrick Pouyanné (Chairman and Chief Executive Officer of Total S.A.) signed a binding agreement on the terms to enter the Arctic LNG 2 project.
The agreement provides for the acquisition by Total of a 10% participation interest in the project, in addition to the right to acquire additionally up to 5% in case of Novatek deciding to decrease its participation interest in the project below the currently planned 60%.
The transaction will be closed no later than 31 March 2019. The project’s value is determined at US$25.5 billion dollars.
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“Total is one of the leading global LNG players and a valued partner of Novatek with a long and successful track record of mutually beneficial cooperation. We welcome their participation in our Arctic LNG 2 project.” noted Leonid Mikhelson, Novatek’s Chairman of the Management Board, during the signing of the agreement, “Our prolific hydrocarbon resource base in the Yamal and Gydan peninsulas offers an unparalleled opportunity to participate in scalable LNG projects that will offer competitively priced LNG to key consuming markets. The entry of such a professional partner to Arctic LNG 2 already at an early stage confirms outstanding economic attractiveness and huge perspectives of LNG projects on the Yamal and Gydan peninsulas.”
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/25052018/novatek-and-total-confirmed-as-partners-in-arctic-lng-2-project/