Novatek, Gazprom Neft Equalize SeverEnergia Stakes

Russia’s Novatek, the operator of the Yamal LNG project, said that its Board of Directors resolved yesterday to approve several transactions, which will enable the company and Gazprom Neft to equalize their equity stakes in the SeverEnergia joint venture.

Novatek currently holds 59.8% of the joint venture, with Gazprom Neft holding the remaining 40.2% equity stake. The agreement stipulates that Novatek will sell a 9.8% equity stake in SeverEnergia for a cash payment of USD 980 million.

Chairman of the Management Board of Novatek, Leonid V. Mikhelson commented: “Our decision to sell this equity stake and equalize our respective ownership interest is based on our long-term strategic partnership with Gazprom Neft and a successful track record of asset management on a parity basis. Moreover, it confirms the existing agreements on sales of natural gas and liquid hydrocarbons produced by SeverEnergia.”

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Press Release, April 1, 2014; Image: Novatek