Russia: Novatek, Gazprom Sign MoC to Increase Yamal LNG Production

OAO NOVATEK said today that OAO Gazprom and the company have signed a Memorandum of Cooperation whereby NOVATEK and Gazprom are considering the possibility to establish a joint venture to increase liquefied natural gas (LNG) production capacity on the Yamal peninsula as well as jointly developing hydrocarbon resources on the Gydan peninsula.

The companies will consider establishing a joint venture (preliminary shareholdings: Gazprom – 75%; NOVATEK – 25%) based on the hydrocarbon resources of Gazprom’s Tambey fields to increase LNG production on the Yamal peninsula, NOVATEK said in a statement.

The companies also plan to establish a joint venture based on NOVATEK’s Utrenneye (Salmanovskoye) field to develop the existing assets located on the Gydan peninsula with equal shareholdings (Gazprom – 50% and NOVATEK – 50%). Gazprom and NOVATEK will formulate and approve an integrated program for developing their fields on the Gydan peninsula.

The timeline to bring the Shtokman LNG Project into operation does not depend on the plans to establish a joint venture for LNG production on the Yamal peninsula, NOVATEK added.

[mappress]
LNG World News Staff, April 17, 2012