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To buy 51% stake in co. with exploration license for South-Tambeyskoye Field.

Moscow-based Novatek plans to acquire a 51% equity stake in Yamal LNG for US$650 million. The purchase of the equity stake includes the acquisition of shares from Orsel Consultants Ltd., Aldi Trading Ltd. and Innecto Ventures Ltd., which are all related to Luxembourg-based investment fund Volga Resources SICAV-SIF SA. Volga has recently entered a deal to acquire 13.13% of the issued share capital of Novatek. Yamal LNG holds the license for exploration and development of the South-Tambeyskoye Field in the northeastern Yamal Peninsula. As of Jan. 1, 2008, proved and probable reserves in the field were 1.3 trillion cubic meters of gas. Novatek chief executive Leonid Mikhelson says, "The acquisition of the South-Tambeyskoye field significantly increases our resource base ensuring future natural gas and gas condensate production growth. The acquisition of the additional resources is accretive to the company's overall value and supports Novatek's long-term development strategy."