Not to be confused with Novatek Inc, a US company that produces synthetic diamonds for the oil and gas industry.
|Traded as||MCX: NVTK|
|Industry||Oil and gas|
|Alexander Y. Natalenko (Chairman)|
Leonid Mikhelson (CEO)
|Revenue||$8.02 billion (2016; 2017)|
|$4.6 billion (2016)|
|$3.95 billion (2016)|
|Total assets||$14.4 billion (2016)|
|Total equity||$9.81 billion (2016)|
Number of employees
Novatek (Russian: ОАО «НОВАТЭК», MCX: NVTK, LSE: NVTK) is Russia's largest independent 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.
In 2006, the company produced roughly 30 billion cubic metres (1.1 trillion cubic feet) of natural gas. By 2010, production had grown to 37.2 billion cubic metres (1.31 trillion cubic feet), and in 2011 to 52.9 billion cubic metres (1.87 trillion cubic feet) In 2010, Novatek supplied 13% of the domestic market and accounted for 32% of non-Gazprom production. Total reserves amount to 9.4 billion barrels of oil equivalent (5.8×1010 GJ) utilizing 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 EBITDA (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 161 billion cubic metres (5.7 trillion cubic feet) 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 (Itera owns 49% of the shares). 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 addition, Novatek has acquired the following companies:
- SNP Nova - pipeline construction
- Purneftegasgeologiya - natural gas
- Tarkosaleneftegas - natural gas
- Khancheyneftegas - natural gas
- Yurkharovneftegas - natural gas
Novatek has been ranked as being among the 13th best of 92 oil, gas, and mining companies on indigenous rights in the Arctic.
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 SA with 16% and Gazprom with 9.4%.
In July 2014, the US Government announced sanctions targeting the Russian energy sector in retaliation to the Kremlin's annexation of Crimea. These sanctions target the provision of long-term (over 90 days) debt financing denominated in USD offered to companies with the Russian Energy Sector.
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