OAO NOVATEK reported that OAO Gazprom and the Company have signed a Memorandum of Cooperation whereby NOVATEK and Gazprom are considering the possibility to establish a joint venture to increase liquefied natural gas (LNG) production capacity on the Yamal peninsula as well as jointly developing hydrocarbon resources on the Gydan peninsula.

The Parties will consider establishing a joint venture (preliminary shareholdings: Gazprom - 75%; NOVATEK - 25%) based on the hydrocarbon resources of Gazprom's Tambey fields to increase LNG production on the Yamal peninsula.

The Parties also plan to establish a joint venture based on NOVATEK's Utrenneye (Salmanovskoye) field to develop the existing assets located on the Gydan peninsula with equal shareholdings (Gazprom - 50% and NOVATEK - 50%). Gazprom and NOVATEK will formulate and approve an integrated program for developing their fields on the Gydan peninsula.

Tags: Gazprom, NOVATEK