NOVATEK selects strategic partner for Yamal LNG Project

Марта 03, 2011

NOVATEK and TOTAL have signed a Memorandum of Cooperation (the Memorandum) which provides for TOTAL to acquire a 20% participation interest in the Project. The Memorandum stipulates that both parties have defined the parameters of the Project’s strategic partnership and shall take steps to close the deal by the end of the first half of 2011.

“TOTAL’s experience in implementing complex oil and gas projects, as well as their global presence in LNG markets, will significantly contribute to the Project’s overall performance and timely implementation” noted Leonid Mikhelson, NOVATEK’s Chairman of the Management Committee, during the signing of the Memorandum.
The Yamal LNG Project includes the construction of production, storage and loading facilities for liquefied natural gas (LNG) based on the resources of the South-Tambeyskoye field.
As of 31 December 2010, the South-Tambeyskoye field’s proved reserves under SEC standards totaled 418 billion cubic meters of natural gas and 15 million tons of gas condensate while the field’s proved plus probable reserves appraised in accordance with PRMS methodologies totaled 802 billion cubic meters of natural gas and 31 million tons of gas condensate.
The Project calls for the construction of a 15 million ton per annum LNG plant and production capacity for up to one million tons of gas condensate per annum. The launch of the first train of the LNG plant is scheduled for 2016.
OAO NOVATEK is Russia’s largest independent gas producer and the second-largest natural gas producer in Russia. Founded in 1994, the Company is engaged in the exploration, production, processing and marketing of natural gas and liquid hydrocarbons. The Company’s 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 83% of Russia's natural gas production and 16% of the world’s gas production. NOVATEK is an open joint stock company established under the laws of the Russian Federation. The Company’s shares are listed on the Russian Trading System (RTS), MICEX Stock Exchange and the London Stock Exchange (LSE) under the ticker symbol ‘NVTK’ and on the NASDAQ PORTAL System as Rule 144A GDR under the ticker symbol “NVATY”.
TOTAL S.A. is a recognized leader in the global LNG markets with over 40 years of experience. TOTAL is currently active in LNG production projects in Indonesia, Yemen, Qatar, Nigeria, Norway, the UAE and Oman (total combined LNG output of 63 million tons per annum) and is constructing or plans to construct LNG projects in Australia, Angola, Nigeria and Russia.