NOVATEK bags ALROSA's gas assets auction

ALROSA has summed up the results of public auction for the sale of its gas assets. PJSC NOVATEK that offered RUB 30.3 billion for both companies on sale was declared the winner.

Apart from PJSC NOVATEK, LLC Status took part in the auction.

100 per cent blocks of shares of Maretiom Investments Limited and Velarion Investments Limited that hold 100 per cent of shares in JSC Geotransgaz and 100 per cent of stakes in Urengoy Gas Company LLC were put up for auction as a single lot. ALROSA Supervisory Board approved their sale on December 22, 2017. The reserve price at the auction was set at RUB 30 billion with the bidding step of RUB 100 million.

"We are satisfied with the results of the auction.The final price is in line with our expectations and market-value appraisal of these assets," ALROSA CEO Sergey Ivanov commented on the trading results. "It is particularly important for us that ALROSA finally managed to sell its non-core gas assets as it took us a long time to find a buyer.At the same time, we are pleased that a strategic investor who has vast experience and understands the production-specific issues acquired them.In its turn, ALROSA now has the opportunity to focus on diamond mining, its core business."

In accordance with the terms of license agreements, JSC Geotransgaz and Urengoy Gas Company LLC are engaged in gas and gas condensate production on the territory of Beregovoy and Ust-Yamsoveisky license areas in Yamalo-Nenets Autonomous District.

JSC Geotransgaz carries out commercial development of Valanginian gas condensate deposit and Cenomanian gas deposit at its licensed area of Beregovoye oil and gas condensate field.

Urengoy Gas Company LLC is engaged in geological prospecting, planning and surveying, research and development of the area and commissioning of existing deposits of Ust-Yamsoveisky licensed area into commercial operation.