Novatek declared the conclusion of an agreement to acquire a 49% equity stake in ZAO Nortgas ('Nortgas') from R.E.D.I. HOLDINGS for $1,375 million. The transaction is expected to close by year-end 2012.

Nortgas holds the hydrocarbon production license for the Severo-Urengoyskoye field, located in the Nadym-Pur-Taz and Purovskiy regions of the Yamal-Nenets Autonomous District and is in close proximity to NOVATEK's existing production, transportation and processing infrastructure.

According to international petroleum firm DeGolyer & MacNaughton, the PRMS proved reserves of Nortgas as of 31 December 2011 were appraised at 1.7 billion barrels of oil equivalent, of which over 13% are classified as liquid hydrocarbons. Hydrocarbon deposits of the Severo-Urengoyskoye field are allocated between the Eastern and Western domes. During the first nine months 2012, the Severo-Urengoskoye field produced 3.1 billion cubic meters of natural gas and 320 thousand tons of de-ethanized gas condensate.

Tags: NOVATEK