Russia: Novatek, Gazprom Neft Buy More of SeverEnergia

Yamal Development, a 50/50 Joint Venture between Novatek and Gazprom Neft, signed a binding agreement with the Italian energy company, Eni on acquiring a 60% equity stake in Artic Russia B.V., which owns 49% of the SeverEnergia Joint Venture. The value of the transaction is USD 2,940 million.

The transaction is subject to receipt of necessary approvals. Following completion of the transaction, the effective share of Yamal Development in SeverEnergia will increase to 80.4%.

SeverEnergia holds development and production licenses for the Samburgskiy, Yevo-Yakhinskiy, Yaro-Yakhinskiy and North-Chaselskiy license areas.

As at 1 January 2013, the recoverable reserves of SeverEnergia under the ABC1+C2 categories of the Russian reserve classification were estimated at 1.35 trillion cubic meters of natural gas and 699 million tons of liquid hydrocarbons.

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LNG World News Staff, November 20, 2013; Image: Gazprom Neft