NOVATEK, Mitsui and JOGMEC Sign Sale Agreement for Arctic LNG 2 Stake

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(Image Courtesy: Arctic Today)

On Saturday, in the presence of the President of Russian Federation Vladimir Putin, and the Prime Minister of Japan Shinzo Abe, PAO NOVATEK (“NOVATEK” and/or the “Company”) and the consortium of Mitsui & Co (“Mitsui”) and Japan Oil, Gas and Metals National Corporation (“JOGMEC”) signed the Sales and Purchase Agreement to purchase a 10% participation interest in the Arctic LNG 2 project.

The participation in the Project also provides for the long-term LNG offtake of approximately two million tons per annum by the Japanese partners. The Agreement will close in the nearest future subject to regulatory approvals.

“We welcome the consortium of Mitsui and JOGMEC as partners in our Arctic LNG 2 project,” noted Leonid Mikhelson, NOVATEK’s Chairman of the Management Board. “Japan has 50 years of experience with importing LNG and is one of the largest LNG consuming countries. Moreover, Japanese companies have extensive experience in
implementing LNG projects as well as marketing LNG around the world. The entry of Japanese partners into Arctic LNG 2 will contribute to its successful implementation”.

The Arctic LNG 2 project envisages constructing three LNG trains at 6.6 million tons per annum each, using gravity-based structure (GBS) platforms. The Project is based on the hydrocarbon resources of the Utrenneye field. As of 31 December 2018, the Utrenneye field’s 2P reserves under PRMS totaled 1,138 billion cubic meters of natural gas and 57 million tons of liquids. Under the Russian classification reserves totaled 1,978 billion cubic meters of natural gas and 105 million tons of liquids. OOO Arctic LNG 2 owns an LNG export license.

Sea News, July 1