China National Petroleum Corp (CNPC) acquired a 20% stake in the Yamal liquified natural gas project of Novatek. No financial details were disclosed about the deal. The transaction was finalized in St. Petersburg, Russia. Early this year, the CNPC and Novatek inked the preliminary agreement for the deal also in St. Petersburg. In that meeting, CNPC had promised to buy at least three million metric tons of liquified natural gas annually in the Yamal project.
In an emailed statement to Bloomberg, Novatek's Chief Executive Officer Leonid Mikhelson said, "CNPC's entrance in Yamal LNG is an important milestone for the project. We are pleased to welcome a new, strong partner who will contribute its capabilities and resources to the successful implementation."
France's Total and CNPC now each owns a 20% stake in the Arctic venture. Novatek said it would be willing to cut its stake further to only 51%. Billionaires Leonid Mikhelson and Gennady Timchenko control Novatek.
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