Novatek Closes Sale of 20% Interest in Yamal LNG to CNPC

Novatek announced Tuesday the closing of the sale of a 20% satke in Yamal LNG project to CNODC, a subsidiary of China National Petroleum Corporation (CNPC), upon the receipt of all necessary regulatory approvals from Russian, European and Chinese authorities.

Following the completion of the deal, the shareholder structure of Yamal LNG is as follows: Novatek - 60%, Total - 20%, CNPC - 20%.

“The entrance of CNPC into the project envisages a payment for the participation interest, proportional reimbursement of past costs of Novatek as well as disproportional financing for the project through contributions to the charter capital of Yamal LNG and shareholder loans,” the company said.

Chairman of the Management Board of Novatek, Leonid V. Mikhelson stated “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”.

Sign-up for our free weekly newsletter update via email here