CNOOC Ltd has announced that, alongside CEPR Ltd, a wholly-owned subsidiary of CNOOC, it has entered into a share purchase agreement with joint stock company Novatek and Ekropromstroy Ltd liability company, a wholly-owned subsidiary of JSC Novatek. Pursuant to this agreement, CEPR will acquire 10% equity interest in Arctic LNG 2 LLC, held by Ekropromstroy.
Completion of the acquisition is conditional upon the approval of relevant government authorities of China and Russia and satisfaction of certain other conditions. The acquisition is expected to complete in the near future.
Arctic LNG 2 LLC is a limited company, incorporated in the Russian Federation, engaging in the Arctic LNG 2 Project. The Arctic LNG 2 Project is the second largest onshore conventional natural gas project led by JSC Novatek on the Gydan Peninsula in Russia. It includes the development and production of the Utrenneye gas field, as well as the construction and operation of three LNG trains.
Arctic LNG 2 LLC holds the LNG licence granting the exclusive right to export LNG produced from gas extracted from the Utrenneye gas field.