Gazprom and NOVATEK have signed a Memorandum of Cooperation, according to which they address possible establishment of joint ventures to build up integrated capacities on liquefied natural gas (LNG) production on the Yamal Peninsula and joint development of the available resource base on the Gydan Peninsula.

For the purpose of increasing LNG production on the Yamal Peninsula the Parties will consider a possibility to set up a joint venture based on the resources of the Tambey group of fields owned by Gazprom, with stakes to be provisionally distributed among the participants in the following way: Gazprom – 75 per cent, NOVATEK – 25 per cent.

In order to further develop the available assets on the Gydan Peninsula the Parties are going to set up a joint venture based on NOVATEK-owned Utrenneye (Salmanovskoye) field with the following shareholding structure: Gazprom – 50 per cent, NOVATEK – 50 per cent. Gazprom and NOVATEK will seek to develop and approve an integral development program for the fields they own on the Gydan Peninsula.

LNG production on the Yamal Peninsula is not related to the Shtokman LNG project commissioning deadlines.

Background

The Severo-Tambeyskoye, Zapadno-Tambeyskoye and Tasiyskoe fields pertain to the Tambey group of fields located on the Yamal Peninsula in close proximity to the Sabetta Port and the Yuzhno-Tambeyskoye field infrastructure being currently developed. The aggregate ABC1+C2 natural gas reserves of these fields make up 1.56 trillion cubic meters which allow producing some 20 million tons of LNG per year.

The Utrenneye (Salmanovskoye) field is located on the Gydan Peninsula. The field's ABC1+C2 natural gas reserves total 767.1 billion cubic meters.