Novatek Signs Final Agreement to Sells 9.9% in Yamal LNG Project to China's Silk Road Fund

NOVATEK on Thursday announced the signing of binding definitive agreements as part of a transaction for selling an equity stake in the Yamal LNG project to China’s Silk Road Fund.
 
The parties signed a share purchase and sale agreement in relation to a 9.9 percent equity stake in Yamal LNG. The parties also signed an agreement for the provision of a 15-year loan by SRF to NOVATEK in the amount of approx. EUR 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 signing of the binding agreements for the sale of an equity stake in Yamal LNG is another important step in the execution of our long-term development strategy. With the closure of this transaction we will achieve the appropriate target shareholder structure, which will contribute to the planned financing of the project and further facilitate its successful implementation,” Chairman of the Management Board of NOVATEK, Leonid V. Mikhelson stated.
  
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 estimates, the proven and probable reserves of the South-Tambeyskoye field as of 31 December 2014 were appraised at 926 billion cubic meters of natural gas. The project is currently at the active construction stage.
 
The Silk Road Fund is a $40 billion medium- to long-term investment and development fund established in Beijing in December 2014.