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% blocks of shares of Maretiom Investments Limited and Velarion Investments Limited that hold 100% of shares in JSC Geotransgaz and 100% 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.
According to Leonid Mikhelson, Chairman of the Board of PJSC Novatek, the Company's priority is to maintain the production level in the zone of the Unified Gas Supply System (UGSS) near the transportation and processing infrastructure of NOVATEK.
" Beregovoy and Ust-Yamsoveisky areas fully meet these criteria, these are assets with quality reserves, this is a profitable acquisition for us. They will make an additional contribution to the extraction of gas and liquid hydrocarbons to load our chain of gas condensate processing and maximize the profitability of the Company," said Mikhelson.