NOVATEK announced the closing of the sale of a 20% participation interest 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: OAO NOVATEK – 60%, Total S.A. – 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.
Chairman of the Management Board of NOVATEK, Leonid V. Mikhelson stated “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”.
LNG World News Staff, January 14, 2014; Image: Novatek