Novatek sells 9.9 percent of Yamal LNG
MOSCOW, September 3, 2015 – Russia’s Novatek announced a deal on Wednesday with Chinese investment group Silk Road Fund offering them a 9.9-percent stake on the Yamal LNG project in the arctic. Chinese interests now own 30 percent of the project, including the 20 percent acquired by the China National Petroleum Corporation.
A sale price has not been announced, but Russian newspaper Kommersant estimated the deal to be worth at least $900 million, and US financial management and advisory company Merrill Lynch estimated it could be worth $2 billion.
Novatek puts annual production from the future Yamal LNG project at 16.5 million tonnes. It is estimated that the South Tambey gasfield, which will feed the plant, holds 926 bcm (32.7 tcf) in natural gas reserves. The Chinese National Petroleum Corporation paid about $1 billion for its 20 percent of the Yamal project in 2013, and France’s Total also holds a 20-percent share, which it secured for $425 million in 2011.
Novatek intends to hold onto the majority share to retain control of operations.
Image credit Novatek
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