The contract has been signed. “Total” joined the project “Arctic LNG 2”
15:42 5 марта 2019
Категории: News in English
The company “NOVATEK” and the concern “Total” signed the contract of purchase and sale of 10% in the project “Arctic LNG 2” within the binding agreement on terms of joining the project concluded in May of 2018 at the St. Petersburg international economic forum with closing of the transaction in the first quarter of 2019.
Considerable progress in implementation of the project “Arctic LNG 2” has been observed since the moment of signing of the agreement last May, as the press service of NOVATEK tells the news agency “Sever-Press”. The main technical solutions and project documentation (FEED) were completed in October. As a result, the preliminary estimate of capital expenditures at the level of 20-21 milliard US dollars was confirmed. Exploration drilling in Utrenneye field, which is the resource base of the project, allowed increasing gas reserves up to 2 trillion cubic meters according to the Russian classification. It was confirmed by the State commission on mineral reserves.
The conditions for Total to join the project include payment of 10% of participation and financing of “Arctic LNG 2” through capital contributions.
“We have been successfully cooperating with Total for many years and have created good working relations based on mutual trust and respect. We are glad to continue working together on our new project “Arctic LNG 2”, said Leonid Mikhelson, the Chairman of the Board of NOVATEK. – “Rich traditional resource base and high level of project development, innovative technologies and our ability to launch large-scale LNG projects in the arctic region are part of our strategy on value appreciation for shareholders”.
The project “Arctic LNG 2” foresees construction of three stages for production of liquefied natural gas with the capacity of 6 million 600 thousand tonnes per year each on gravity-base structures. The project is fulfilled on the resource base of Utrenneye field. On the state of the 31st of December of 2018 the proved and probable reserves of the field, according to PRMS standards, made 1138 milliard cubic meters of natural gas and 57 million tonnes of liquid hydrocarbons. According to the Russian classification, the reserves of the field made 1978 milliard cubic meters of natural gas and 105 million tonnes of liquid hydrocarbons. OOO “Arctic LNG 2” owns the license for export of LNG.