CNOOC Ltd. said June 7 that the company and CEPR Ltd., a wholly-owned subsidiary of the company, entered into a share purchase agreement with Joint Stock Company Novatek and Ekropromstroy Ltd. Liability Co., a wholly-owned subsidiary of JSC Novatek, pursuant to which, CEPR shall acquire 10% equity interest in Arctic LNG 2 LLC held by Ekropromstroy.
Pursuant to the share purchase agreement, 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.
JSC Novatek is principally engaged in the exploration, production, processing and marketing of natural gas and liquid hydrocarbons and has more than 20 years of operational experience in the Russian oil and natural gas sector.
Arctic LNG 2 LLC is a limited company incorporated in the Russian Federation engaging in the Arctic LNG 2 Project, the second large onshore conventional natural gas project led by JSC Novatek on the Gydan Peninsula in Russia, which contains the development and production of Utrenneye gas field and the construction and operation of three liquefied natural gas trains. Arctic LNG 2 LLC holds the LNG license that grants an exclusive right to export LNG produced from gas extracted from the Utrenneye gas field.
Purchase from Port Arthur, Texas, facility is the biggest deal signed since 2013, says analyst.
The move comes as crude exports from the U.S. Gulf Coast region are booming, spurred by production growth in the prolific Permian Basin.
Kinder Morgan has once again pushed back start-up of its Elba Liquefaction Project near Savannah, Georgia, in another delay after previously targeting an in-service date of May 1.