Gazprom and NOVATEK extend Memorandum of Cooperation

Gazprom and NOVATEK have extended the Memorandum of Cooperation signed this April until February 1, 2013. According to the document, Gazprom and NOVATEK address possible establishment of joint ventures to build up integrated capacities on liquefied natural gas (LNG) production on the Yamal Peninsula and joint development of the available resource base on the Gydan Peninsula.

For the purpose of increasing LNG production on the Yamal Peninsula the Parties are considering possibilities for setting up a joint venture based on the resources of the Tambey group of fields owned by Gazprom, with stakes to be provisionally distributed among the participants in the following way: Gazprom – 75 per cent, NOVATEK – 25 per cent. Gazprom and NOVATEK will seek to develop and approve an integral development program for the fields they own on the Gydan Peninsula.

“In the nearest future Gazprom and NOVATEK will make a further step towards setting up a joint venture on LNG production in Yamal. The relevant documents will be signed next January,” said Alexey Miller.


Background

The Severo-Tambeyskoye, Zapadno-Tambeyskoye and Tasiyskoe fields pertain to the Tambey group of fields located on the Yamal Peninsula in close proximity to the Sabetta Port and the Yuzhno-Tambeyskoye field infrastructure being currently developed. The aggregate ABC1+C2 natural gas reserves of these fields make up 1.56 trillion cubic meters which allow producing some 20 million tons of LNG per year.

The Utrenneye (Salmanovskoye) field is located on the Gydan Peninsula. The field’s ABC1+C2 natural gas reserves total 767.1 billion cubic meters.