Novatek Pact with Chinese Duo on Arctic LNG 2

Russia's second largest natural gas producer, Novatek has signed share purchase agreements with two Chinese oil giants for the sale of participation interest in the Arctic LNG 2 project.

Novatek announced that it has signed the Share Purchase Agreement with China National Offshore Oil Corporation (CNOOC) in relation to the sale of a 10% participation interest in the Arctic LNG 2 project.

The Agreement will close in the nearest future subject to approval by regulatory authorities of the Russian Federation and the People’s Republic of China.

Novatek signed a separate Share Purchase Agreement with wholly owned subsidiary of China National Petroleum Corporation (CNPC) in relation to the sale of a 10% participation interest in the Arctic LNG 2 project.

The Agreement will close in the nearest future subject to approval by regulatory authorities of the Russian Federation and the People’s Republic of China.

The Arctic LNG 2 project envisages constructing three LNG trains at 6.6 million tons per annum each, using gravity-based structure (GBS) platforms. The Project is based on the hydrocarbon resources of the Utrenneye field.

As of 31 December 2018, the Utrenneye field’s 2P reserves under PRMS totaled 1,138 billion cubic meters of natural gas and 57 million tons of liquids. Under the Russian classification reserves totaled 1,978 billion cubic meters of natural gas and 105 million tons of liquids. OOO Arctic LNG 2 owns an LNG export license.