Novatek Increases Stake in SeverEnergia to 59.8%

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

Arctic Russia owns a 49% equity stake in the SeverEnergia Joint Venture, which holds four licences for the exploration and production of hydrocarbons in the region of Yamal Nenets.

“SeverEnergia has significant potential for increasing natural gas, gas condensate and crude oil production upon completing the joint venture’s field development,” Leonid Mikhelson, Chairman of the Management Board of Novatek, commented in a note released on Wednesday.

After the acquisition, Novatek increased to 59.8% its effective share in SeverEnergia.

SeverEnergia is intentioned to step up efforts to develop the area and start production in the next months.

“The Samburgskoye field is currently the only producing field of this Joint Venture, but we plan to commence commercial production in 2014 at two other large fields, Urengoyskoye and Yaro-Yakhinskoe, which contain a high condensate mix in the natural gas stream,” Mikhelson explained in the note.