Russian firm Novatek has signed a memorandum of understanding (MoU) with Saudi Aramco, the Saudi Arabian National Oil Company, for collaboration on international natural gas projects.
Under the MoU, the partnership will include LNG supplies, development of LNG markets, as well as gas exploration and production projects.
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In addition, the parties will undertake research and technology development.
Novatek management board chairman Leonid Mikhelson said: “We see a wide array of exciting and mutually beneficial energy opportunities to cooperate with Saudi Arabia.
“Novatek’s strategy envisages rapidly growing our LNG production and attracting international partners, and, accordingly, we welcome the interest of such a globally important company as Saudi Aramco to jointly collaborate with us in gas markets.”
In a separate transaction, Novatek won an auction to buy a 100% stake each in Maretiom Investments and Velarion Investments from Russian state-owned company Alrosa for a total consideration of RUR30.3bn ($536.73m).
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By GlobalDataMaretiom owns 100% equity share in Geotransgaz, while Velarion holds 100% participating interest in Urengoy Gas Company.
The acquisition of Geotransgaz will give Novatek access to hydrocarbon exploration and production rights for the Beregovoy licence area.
Based on the Russian resource classification as of 31 December last year, the licence has estimated hydrocarbon resources of 436 million barrels of oil equivalent (boe).
During last year, production from the licence stood at 1.6 billion cubic metres of natural gas and 185,000t of gas condensate.
The Urengoy Gas Company is engaged in development and production of gas and condensate and holds the hydrocarbon exploration and production rights for the Ust-Yamsoveyskiy licence area.
