In accordance with the terms of the share purchase agreement, the company made an initial payment of RUB4,650m (approximately $151.06m), with the balance due by the end of 2011.
In conjunction with the acquisition, Novatek has refinanced 51% of Sibneftegas’ total debt in an amount not exceeding RUB11,040m (approximately $358.64m).
Sibneftegas holds subsoil exploration and production licenses for the Beregovoye, Pyreinoye and Zapadno-Zapolyarnoye fields and the Khadyryakhinskiy license area, which are located in the Yamal-Nenets autonomous region.
The Beregovoye and Pyreinoye fields are currently engaged in commercial production of natural gas and produced 8.9 billion cubic meters in the first eleven months of 2010.
The remaining field and license area are in the early stages of geological exploration.
