Novatek

Novatek

Type	Public
Traded as	RTS:NVTK MICEX:NVTK LSE: NVTK
Industry	Oil and gas industry
Founded	1994 (1994)
Headquarters	Tarko-Sale, Russia
Key people	Alexander Y. Natalenko (Chairman) Leonid Mikhelson (CEO)
Products	Petroleum Natural gas
Revenue	US$4.1 billion (2010)
Employees	3,600
Website	novatek.ru/en/

OAO Novatek (Russian: ОАО «НОВАТЭК», MICEX:NVTK, RTS:NVTK) is the Russia's largest independent natural gas producer, and second-largest in overall production after Gazprom. The company was originally known as OAO FIK Novafininvest. Novatek is based in the Yamalo-Nenets Autonomous Region in West Siberia, and maintains sales office in Moscow.

The major shareholders of Novatek are Volga Resources, the Luxembourg-based fund controlled by oil trader Gennady Timchenko, with 20.77% of shares and Gazprom with 10%.^[1][2] A 9.4% stake is owned by Gazprombank, while Novatek's CEO Leonid Mikhelson and Gennady Timchenko have an option to buy this stake.^[2] Total S.A. has signed a memorandum of understanding to acquire 12.08% at a cost of $4 billion, with an option to increase its stake to 19.4%.^[3]

Operations

The major gas field owned by Novatek is Yurkharovskoye field.^[4] On 27 May 2009, Novatek bought from Volga Resources 51% in Yamal LNG, which controls the giant South-Tambeyskoye field.^[5] On 2 July 2010, Novatek purchased Tambeyneftegas, which holds the licence to the arctic Malo-Yamalskoye field, located on the Yamal Peninsuila and holding 161 billion cubic metres (5.7 trillion cubic feet) of natural gas and 14.4 million tonnes of gas condensate.^[6] Novatek and Gazprom plan to build a liquefied natural gas plant in Yamalo-Nenets Autonomous Okrug.^[7] The third partner will be Total S.A. with 20% stake.^[3] Together with Total S.A., Novatek develops the Termokarstovoye field in Yamal.^[8]

In December 2010, Novatek bought 51% stake in Sibneftegaz from Gazprombank. In January 2011, it made a takeover offer to minority shareholders (the largest one being Itera) for the remaining 49% of shares.^[9] Sibneftegaz holds licences for exploration and production in the Yamal-Nenets region, including for the Beregovoye field, Pyreinoye field, Zapadno-Zapolyarnoye field, and the Khadyryakhinskiy licence area.^[10] Sibneftegaz owns rights to develop oil and gas condensate fields with a total resource of 395.53 bcm of natural gas and 8.44 million tonnes of gas condensate.^[11]

In 2011, Novatek was awarded licences to develop the Geofizichenskoye field, Salmanovskoye (Utrenneye) field, Severo-Obskoye field and Vostochno-Tambeiskoye field.^[12]

In addition, Novatek has acquired following companies:

• SNP Nova - pipeline construction
• Purneftegasgeologiya - natural gas
• Tarkosaleneftegas - natural gas
• Khancheyneftegas - natural gas
• Yurkharovneftegas - natural gas

References

1. ^ Paxton, Robin (2010-03-05). "Timchenko's fund becomes largest Novatek owner". Reuters. http://uk.reuters.com/article/idUKLDE6241NZ20100305. Retrieved 2010-07-02. 
2. ^ ^{a b} "Novatek sale 'below market price'". Upstream Online (NHST Media Group). 2011-02-10. (subscription required). http://www.upstreamonline.com/live/article244237.ece. Retrieved 2011-02-15. 
3. ^ ^{a b} "Total to buy Novatek stake for $4bn". Upstream Online (NHST Media Group). 2011-03-02. (subscription required). http://www.upstreamonline.com/live/article246752.ece. Retrieved 2011-03-03. 
4. ^ "Novatek boosts flow from Arctic field". Upstream Online (NHST Media Group). 2009-10-19. (subscription required). http://www.upstreamonline.com/live/article196160.ece. Retrieved 2010-07-02. 
5. ^ Zhdannikov, Dmitry (2009-05-27). "Russian oil trade king buys more gas assets". Reuters. http://uk.reuters.com/article/idINLDE6610AO20100702. Retrieved 2010-07-02. 
6. ^ Bachman, Jessica (2010-07-02). "Russia's Novatek acquires new arctic field". Reuters. http://uk.reuters.com/article/idINLDE6610AO20100702. Retrieved 2010-07-02. 
7. ^ "Russian duo team up in Yamal". Upstream Online (NHST Media Group). 2010-06-21. (subscription required). http://www.upstreamonline.com/live/article218317.ece. Retrieved 2010-07-02. 
8. ^ "Putin nod for Total-Novatek plan". Upstream Online (NHST Media Group). 2009-06-24. (subscription required). http://www.upstreamonline.com/live/article181630.ece. Retrieved 2010-07-02. 
9. ^ "Novatek offers Sibneftegaz buyback". Upstream Online (NHST Media Group). 2011-01-21. (subscription required). http://www.upstreamonline.com/live/article242341.ece. Retrieved 2011-01-23. 
10. ^ "Novatek seals Sibneftegaz stake". Upstream Online (NHST Media Group). 2010-12-17. (subscription required). http://www.upstreamonline.com/live/article239841.ece. Retrieved 2011-01-23. 
11. ^ Soldatkin, Vladimir (2010-11-16). "Russia's Novatek to pay $900 mln for Sibneftegaz". Reuters. http://uk.reuters.com/article/2010/11/16/russia-novatek-idUSLDE6AF1ZU20101116. Retrieved 2011-02-19. 
12. ^ "Novatek wins new Yamal licences". Upstream Online (NHST Media Group). 2011-08-30. (subscription required). http://www.upstreamonline.com/live/article275382.ece. Retrieved 2011-08-30. 

External links

• Official website
• Novatek - information and analytics

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