Gazprom Buys 9.8% Equity in SeverEnergia from Novatek for $980 Mln

Gazprom Neft increases its stake in the SeverEnergia joint venture, buying 9.8% equity from Novatek for USD 980 million cash payment. 

“Our decision to sell this equity stake and equalize our respective ownership interest is based on our long-term strategic partnership with Gazprom Neft and a successful track record of asset management on a parity basis. Moreover, it confirms the existing agreements on sales of natural gas and liquid hydrocarbons produced by SeverEnergia,” Leonid Mikhelson, Chairman of the Management Board of Novatek, commented in a note released on Tuesday.

After the transaction, Novatek and Gazprom Neft will each hold 50% equity stake. SeverEnergia, which was created with Yukos' former assets, operates in the Yamalo-Nenets region.

Earlier this year, Yamal Development, joint venture between Novatek and GazpromNeft, completed the acquisition of a 60% equity stake in Arctic Russia from Eni. The sale price was 2.94 billion dollars. 

Since Arctic Russia owns a 49% equity stake in SeverEnergia, the price defined by Yamal Development and Eni in January is close to the price agreed by Gazprom and Novatek on Tuesday.

Russia is reacting to the standoff with the West promoting company and assets restructuring, while also strengthening its ties with Western companies. 

Also on Tuesday, Rosneft Chairman Igor Sechin met with Statoil executive director Heldge Lund in Norway. The two officials spoke about joint projects in the Barents Sea and the Sea of Okhotsk.