Novatek


Novatek is Russia's second-largest natural gas producer, and the seventh-largest publicly traded company globally by natural gas production volume. The company was originally known as OAO FIK Novafininvest. Novatek is based in the Yamalo-Nenets Autonomous Region in West Siberia, and maintains a sales office in Moscow.
The company is not to be confused with Novatek Inc, a US company that produces synthetic diamonds for the oil and gas industry, or Novatek Microelectronics Corp. a supplier of display controller integrated circuits.

Operations

In 2006, the company produced roughly thirty billion cubic metres of natural gas. By 2010, production had grown to, and in 2011 to In 2010, Novatek supplied 13% of the domestic market and accounted for 32% of non-Gazprom production. Total reserves amount to using the Securities and Exchange Commission methodology. Regarding dry sales gas, Novatek operates only in the domestic market, which is characterized by artificially low prices. Novatek's earnings before interest, taxes, depreciation, and amortization and net profit margin in 2011 were 49% and 32%, respectively.
The major gas field owned by Novatek is the Yurkharovskoye field. On 27 May 2009, Novatek bought a 51% stake in Yamal LNG from Volga Resources, which controls the giant South-Tambeyskoye field. On 2 July 2010, Novatek purchased Tambeyneftegas, which holds the licence to the Arctic Malo-Yamalskoye field, located on the Yamal Peninsula and holding of natural gas and 14.4 million tonnes of gas condensate. Novatek and Gazprom plan to build a liquefied natural gas plant in Yamalo-Nenets Autonomous Okrug. Total S.A. will also be involved as a 20% shareholder. Together with Total S.A., Novatek is developing the Termokarstovoye field in Yamal.
In December 2010, Novatek bought a 51% stake in Sibneftegaz from Gazprombank. Sibneftegaz holds licences for exploration and production in the Yamal-Nenets region, including for the Beregovoye field, Pyreinoye field, Zapadno-Zapolyarnoye field, and the Khadyryakhinskiy licence area. Sibneftegaz owns rights to develop oil and gas condensate fields with a total resource of 395.53 bcm of natural gas and 8.44 million tonnes of gas condensate.
In 2011, Novatek was awarded licences to develop the Geofizichenskoye field, Salmanovskoye field, Severo-Obskoye field, and Vostochno-Tambeiskoye field.
In addition, Novatek has acquired these companies:
Novatek is developing the Sabetta port, in a joint project with the Russian government. This port would allow LNG exports by sea from the Yamal Peninsula.
Novatek has been ranked as being among the 13th-best of 92 oil, gas, and mining companies on indigenous rights in the Arctic.

Ownership

Novatek is a public company with shares traded on the London and Moscow stock exchanges. The major shareholders of Novatek are Leonid Michelson, the CEO, with around 28% of the shares, Volga Group with 23% of shares, Total S.A. with 16%, and Gazprom with 9.4%.