24th Jun 2009 14:51
NOVATEK AND TOTAL TO ESTABLISH JOINT VENTURE
OAO NOVATEK ("NOVATEK") and Total SA ("Total"), today have signed a Heads of Agreement (the "Agreement") establishing the framework for joint cooperation in exploring and developing NOVATEK's Termokarstovoye gas condensate field (the "Project"). The Agreement was signed by Leonid Mikhelson, Chief Executive Officer of NOVATEK, and Christophe de Margerie, Chief Executive Officer of Total, during a recent meeting in Moscow.
The Agreement provides for the establishment of a joint venture through the acquisition, by Total, of a 49% participation interest in Terneftegas LLC, a wholly-owned subsidiary of NOVATEK and holder of the license for geological exploration and production of gas and gas condensate at the Termokarstovoye field. Under the terms and conditions of the Agreement, the joint venture has two years to complete exploration works and prepare a field development plan, with a final investment decision to proceed forward with the Project taken in 2011.
The closing date for the transaction is subject to the final approval obtained from the Federal Anti-Monopoly Service.
According to NOVATEK's CEO, Leonid Mikhelson, "We welcome Total's participation in the Project. Their technological capabilities will complement our experience developing complex geological assets and facilitate the effective development of the remote Termokarstovoye field".
Note: The Termokarstovoye gas condensate field was discovered in 1986 and is located in the Krasnoselkup district of the Yamal-Nenets Autonomous Region approximately 250 kilometers to the east of Tarko-Sale. The field's reserves according to the Russian ABC1+C2 classification amount to 47.3 bcm of natural gas and 10.3 mmt of liquids.
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For further information, please visit www.novatek.ru or contact:
| Press Service+7 (495) 721 2207[email protected]
| Investor Relations+7 (495) 730 6020[email protected] |
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 Region, which is the world's largest natural gas producing area and accounts for over 90% of Russia's natural gas production and 20% 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 on the Russian Trading System (RTS) and the London Stock Exchange (LSE) under the ticker symbol 'NVTK' and on the NASDAQ PORTAL System as Rule 144A GDR under the ticker symbol "NVATY".
Copyright Business Wire 2009
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