Novatek firms up Arctic LNG 2 deals with two Chinese companies

Russian gas producer Novatek has signed share purchase agreements with two Chinese companies for the sale of participation interest in the Arctic LNG 2 project. 

Novatek signed the share purchase agreements with the CNOOC Ltd. and  CNPC on Friday as part of Saint-Petersburg International Economic Forum.

Under these agreements, CNOCD and CNOOC will each acquire a 10% participation interest in Arctic LNG 2 project.

The signing of share purchase agreements follows the signing of binding agreements with the two companies back in April 2019.

Novatek said that the share purchase agreements would close in the nearest future subject to approval by regulatory authorities of the Russian Federation and China.

Arctic LNG 2 project is a major liquefied natural gas development led by Novatek on the Gydan Peninsula, Russia. The project will be developed using offshore platforms in northern West Siberia.

The Arctic LNG 2 project envisages the construction of three LNG trains at 6.6 million tons per annum each, using gravity-based structure (GBS) platforms. The project is based on the hydrocarbon resources of the Utrenneye field. As of December 31, 2018, the Utrenneye field’s 2P reserves under PRMS totaled 7,981 million barrels of oil equivalent. Under the Russian classification reserves totaled 13,835 million barrels of oil equivalent. OOO Arctic LNG 2 owns an LNG export license.

Back in March, another company entered the Arctic LNG 2 project. Namely, French Total signed definitive agreements with Novatek for the acquisition of a direct 10% interest in Arctic LNG 2.

In related news, Novatek on Thursday June 6 concluded an agreement with Gazprom Neft, confirming their intention to cooperate in implementing projects in the Russian Arctic.

The agreement confirmed the parties’ intention of establishing a joint venture to undertake all activities involved in the exploration and development of oil and gas fields.

Offshore Energy Today Staff

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