Novatek Closes Sale 20% Interest in Yamal to CNPC

Russia’s Novatek announced on Tuesday it closed the sale of a 20% participation interest in Yamal LNG project to CNODC, a subsidiary of China National Petroleum Corporation (CNPC).

The sale, which has to be approved by Russian, European and Chinese authorities, will change the shareholder structure. Novatek will remain the main shareholder (60% working interest). Total and CNPC will hold 20% each.

The two companies clinched the deal in September.

“The closing of the deal with CNPC is the culmination of our hard work and collective efforts. Our partners in Yamal LNG are now two well-established international companies with extensive expertise in the execution of large-scale oil and gas projects. We believe that the current shareholder structure of Yamal LNG allows us to successfully and timely complete the Project which has already entered into the active construction stage,” Leonid V. Mikhelson, Chairman of the Management Board of Novatek, said in a note released on Tuesday.

Novatek and Total announced their final investment decision in December. The project consists in the development of the South-Tambeyskoye gas condensate field, and the construction of a natural gas liquefaction plant on the Yamal Peninsula.