OAO NOVATEK announced the selection of TOTAL S.A. as the Company’s strategic partner for the development of the Yamal LNG Project.
NOVATEK and TOTAL have signed a Memorandum of Cooperation which provides for TOTAL to acquire a 20% participation interest in the Project. The Memorandum stipulates that both parties have defined the parameters of the Project’s strategic partnership and shall take steps to close the deal by the end of the first half of 2011.
“TOTAL’s experience in implementing complex oil and gas projects, as well as their global presence in LNG markets, will significantly contribute to the Project’s overall performance and timely implementation” noted Leonid Mikhelson, NOVATEK’s Chairman of the Management Committee , during the signing of the Memorandum.
The Yamal LNG Project includes the construction of production, storage and loading facilities for liquefied natural gas (LNG) based on the resources of the South-Tambeyskoye field.
As of 31 December 2010, the South-Tambeyskoye field’s proved reserves under SEC standards totaled 418 billion cubic meters of natural gas and 15 million tons of gas condensate while the field’s proved plus probable reserves appraised in accordance with PRMS methodologies totaled 802 billion cubic meters of natural gas and 31 million tons of gas condensate.
The Project calls for the construction of a 15 million ton per annum LNG plant and production capacity for up to one million tons of gas condensate per annum. The launch of the first train of the LNG plant is scheduled for 2016.
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Source: NOVATEK, March 3, 2011;