OAO Novatek

11/25/2020 | Press release | Distributed by Public on 11/25/2020 03:05

Partners Held a Regular Virtual Meeting to Discuss Status of Arctic LNG 2

25 November 2020

Moscow, 25 November 2020.PAO NOVATEK ('NOVATEK' and/or the 'Company') announced that a regular working meeting was held regarding the status of Arctic LNG 2 project ('Project') with the respective management of the partner companies. The working meeting, which took place in the form of a videoconference, was attended by Leonid Mikhelson (NOVATEK), Patrick Pouyanné (TOTAL), Huang Yongzhang (CNPC), Xu Keqiang (CNOOC), Tatsuo Yasunaga (Mitsui) and Tetsuhiro Hosono (JOGMEC) (collectively, the 'Partners').

During the meeting, the Partners discussed the significant progress on implementing the Arctic LNG 2 project, despite the COVID-19 pandemic. Currently, the overall Project progress is estimated at 29%, with concrete casting of the first GBS platform estimated to be 67% completed. The module fabrication yards are working at full capacity and modules are expected to be completed and shipped according to schedule. The modules fabrication progress for the first GBS is estimated at 46%.

In addition, 17 production wells have already been drilled at the Utrenneye field with three (3) drilling rigs in operation. Two (2) more drilling rigs are expected to be mobilized before year end 2020. The estimated completion of the Utrenniy Terminal is 69%, with the berth expected to be completed in first quarter of 2021. More than 7.5 billion US dollars were financed by Project's participants.

The Partners also discussed the current status of the Project's external financing and confirmed their focus on ensuring its completion in the nearest future.

PAO NOVATEK is the largest independent natural gas producer in Russia, and in 2017, entered the global LNG market by successfully launching the Yamal LNG project. Founded in 1994, the Company is engaged in the exploration, production, processing and marketing of natural gas and liquid hydrocarbons. Upstream activities of the Company's subsidiaries and joint ventures are concentrated mainly in the prolific Yamal-Nenets Autonomous Region, which is the world's largest natural gas producing area and accounts for approximately 80% of Russia's natural gas production and approximately 15% of the world's gas production. NOVATEK is a public joint stock company established under the laws of the Russian Federation. The Company's shares are listed in Russia on Moscow Exchange (MOEX) and the London Stock Exchange (LSE) under the ticker symbol «NVTK».