NOVATEK and China's Silk Road Fund Conclude Selling 9.9% Stake in Yamal LNG

NOVATEK has announced the closing of a transaction to sell a 9.9% equity stake in the Yamal LNG project to China’s Silk Road Fund (SRF) for a  payment amounting to €1,087 million (US$1,237 million).

Following the deal completion, the shareholder structure of the project will be the following:

• NOVATEK 50.1%
• Total S.A.  20%
• CNPC  20%
• SRF  9.9%

Earlier in December 2015, as part of the transaction, NOVATEK received a 15-year loan from SRF in the amount of approximately €730 million for the purpose of financing of the Yamal LNG project. The larger part of the loan has been disbursed to Yamal LNG. 

The Yamal LNG project envisages the construction of an LNG plant with annual capacity of 16.5 million tons per annum based on the feedstock resources of the South-Tambeyskoye field. According to the PRMS reserve standards, the proven and probable reserves of the South-Tambeyskoye field as of 31 December 2015 were appraised at 926 billion cubic meters of natural gas. The Project is currently at the active construction stage.