NVTK: OAO Novatek: NOVATEK acquires 49% of Nortgas
UK Regulatory Announcement
NOVATEK ACQUIRES 49% OF NORTGAS
Moscow, 6 November 2012. OAO NOVATEK (“NOVATEK” and/or the “Company”)
announced today the conclusion of an agreement to acquire a 49% equity stake
in ZAO Nortgas (“Nortgas”) from R.E.D.I. HOLDINGS for $1,375 million. The
transaction is expected to close by year-end 2012.
Nortgas holds the hydrocarbon production license for the Severo-Urengoyskoye
field, located in the Nadym-Pur-Taz and Purovskiy regions of the Yamal-Nenets
Autonomous District and is in close proximity to NOVATEK’s existing
production, transportation and processing infrastructure.
According to international petroleum firm DeGolyer & MacNaughton, the PRMS
proved reserves of Nortgas as of 31 December 2011 were appraised at 1.7
billion barrels of oil equivalent, of which over 13% are classified as liquid
hydrocarbons. Hydrocarbon deposits of the Severo-Urengoyskoye field are
allocated between the Eastern and Western domes. During the first nine months
2012, the Severo-Urengoskoye field produced 3.1 billion cubic meters of
natural gas and 320 thousand tons of de-ethanized gas condensate.
Commercial production at the Western dome commenced in 2001, and it is
estimated that the production launch at the Eastern dome will more than double
the field’s natural gas output and triple the output of gas condensate.
According to NOVATEK’s Chairman of the Management Board, Leonid Mikhelson,
“The ability to acquire a significant asset such as Nortgas is consistent with
our overall strategy to expand our reserve base and raise our production
profile in our core region of operations. We expect significant synergies due
to Severo-Urengoyskoye field’s close proximity to our existing assets and
infrastructure, which will primarily result in additional returns from
processing gas condensate at our Purovsky Plant and the Ust-Luga complex”.
For further information, please visit www.novatek.ru or contact:
Press Service Investor Relations
+7 (495) 721 2207 +7 (495) 730 6013
OAO NOVATEK is Russia’s largest independent gas producer and the
second-largest natural gas producer in Russia. Founded in 1994, the Company is
engaged in the exploration, production, processing and marketing of natural
gas and liquid hydrocarbons. The Company’s upstream activities are
concentrated in the prolific Yamal-Nenets Autonomous Region, which is the
world’s largest natural gas producing area and accounts for approximately 84%
of Russia’s natural gas production and approximately 17% of the world’s gas
production. NOVATEK is an open joint stock company established under the laws
of the Russian Federation. The Company’s shares are listed in Russia on
MICEX-RTS Stock Exchange and the London Stock Exchange (LSE) under the ticker
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