Novatek, Rosneft Agree on Asset Swap (Russia)
NOVATEK announced the conclusion of an agreement with Rosneft on an asset swap, whereby the Novatek’s 51% stake in Sibneftegas will be swapped for Rosneft’s 40% stake in Artic Russia B.V., which owns 49% of SeverEnergia.
The transaction doesn’t involve any cash settlements and will be closed after receipt of the necessary approvals.
On 20 November 2013, Yamal Development (a 50/50 Joint Venture between NOVATEK and GazpromNeft) signed a binding agreement with the Italian energy company Eni on acquiring a 60% equity stake in Artic Russia B.V. Following the completion of the above transactions, NOVATEK’s effective share in SeverEnergia will increase to 59.8%.
Chairman of the Management Board of NOVATEK, Leonid V. Mikhelson commented “The asset swap allows us to optimize our upstream portfolio and concentrate on the development of fields rich in liquid hydrocarbons, which complements our long-term strategy, taking into account our existing infrastructure for transportation, stabilization and fractionation of gas condensate”.
LNG World News Staff, December 23, 2013; Image: Novatek