30th Nov 2010 14:00
YAMAL DEVELOPMENT ACQUIRES51% PARTICIPATION INTEREST IN SEVERENERGIA
Moscow, 30 November 2010. OAO NOVATEK ("NOVATEK" and/or the "Company") announced today the closing of the transaction for the acquisition of a 51% participation interest in OOO SeverEnergia ("SeverEnergia") by OOO Yamal Development, a 50/50 joint venture between NOVATEK and OAO Gazprom Neft. The remaining 49% interest in SeverEnergia is held by Artic Russia B.V. a 60/40 joint venture between Italian oil and gas and energy companies ENI S.p.A and Enel S.p.A, respectively.
The acquisition price for the 51% participation interest amounted to RR 48,714.74 million, including NOVATEK's share of RR 24,357.37 million. Additionally, Yamal Development assumed an outstanding shareholder loan in the amount of RR 7,531.87 million, based on its pro rata interest in SeverEnergia, and NOVATEK's share of the loan totaled RR 3,765.94 million. The total aggregate consideration for the acquisition was US$ 0.26 per barrel of oil equivalent1, based on the ABC1 + C2 reserves acquired from SeverEnergia.
SeverEnergia plans to use the combined experience of the Company and the other shareholders to optimize the development of its multi-layered gas, gas condensate and crude oil fields in order to effectively exploit the fields' hydrocarbon reserves.
The Company will account for its 25.5% interest in SeverEnergia under the equity method.
1. Based on RR/US$ exchange rate of 31.3031 as of 30.11.2010.
Note:OOO SeverEnergia holds 100% of the shares of OAO Arctic Gas, ZAO Urengoil Inc. and OAO Neftegaztechnologia, which hold licenses for the development of oil and gas condensate fields in the Yamal-Nenets Autonomous Region.
As of 1 January 2009, the reserves of OOO SeverEnergia, under the Russian reserve classification ABC1 + C2, totaled 1.26 trillion cubic meters of natural gas, 722 million tons of liquid hydrocarbons.
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For further information, please visit www.novatek.ru or contact:
| Press Service +7 (495) 721 2207 | Investor Relations +7 (495) 730 6013 |
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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 is believed to account for approximately 83% of Russia's natural gas production and 16% of the world's gas production as of 2009. 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), MICEX Stock Exchange 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 2010
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