Russia’s Novatek and Saudi Aramco to work on gas projects

Russian independent natural gas producer Pao Novatek (Novatek) said it signed a preliminary deal with Saudi Aramco for LNG supplies and gas projects.

Under the agreement, Novatek will collaborate with Saudi Aramco on natural gas projects, development of LNG markets, gas exploration and production projects as well as research and technology development, the Moscow and London-listed company said.

"We see a wide array of exciting and mutually beneficial energy opportunities to cooperate with Saudi Arabia,” said Leonid Mikhelson, NOVATEK’s chairman of management board. “Our company owns one of the world’s largest high-quality, low-cost conventional gas reserve base and has gained unique and valuable experience of developing LNG-projects in the Russian Arctic area.”

He said the company’s strategy involves rapidly growing its LNG production and attracting international partners. “We welcome the interest of such a globally important company as Saudi Aramco to jointly collaborate with us in gas markets,” he added.

Novatek’s upstream activities are concentrated mainly in the prolific Yamal-Nenets Autonomous Region, which accounts for approximately 80 per cent of Russia’s natural gas production and approximately 16 per cent of the world’s gas production.