Northgas

Northgas
Company typeprivate
IndustryNatural gas
Founded1993
Headquarters
Russia
Key people
Vyacheslav Kramarovsky (Director General)
Revenue23,079,100,000 Russian ruble (2017) Edit this on Wikidata
OwnerGazprom
Novatek
Websitewww.northgas.ru

ZAO Northgas (Russian: ЗАО Нортгаз) is a natural gas-producing company in Russia. It is a developer of the North-Urengoy (Severo-Urengoyskoye) gas field in the Yamalo-Nenets region. According to DeGolyer and MacNaughton, it controls a total reserves of 368 billion cubic metres of natural gas. All produced gas is acquired by Gazprom.[1]

History

Northgas was founded in 1993 to develop the North-Urengoy field.[2] The company was controlled by Gazprom through its subsidiary Urengoygazprom, which owned a 51% stake in Northgas.[3] 44% of the company was owned by Bechtel Energy, while Tansley, an offshore company owned by the Azerbaijani businessman Farkhad Akhmedov had a stake of 5%.[4] A license for the North-Urengoy field was transferred from Urengoygazprom to Northgas in 1994.[5] In 1996, Bechtel sold its stake to Akhmedov-owned Farcot Group, which later also took over a stake owned by Transley. In 1999–2001, Farkhad Akhmedov gained full control over Northgas through the three emissions of additional shares and signing-off the existing share capital.[6][4] Its ownership was transferred to the holding company REDI.[2][6]

Northgas started natural gas production in 2001. However, due to a dispute with Gazprom, the access of produced gas to the gas transportation system of Russia was limited and the Northgas license of the North-Urengoy field was annulled. In 2005, the dispute was resolved by Gazprom acquiring a 51% stake in Northgas free of charge.[5][7][8] Gazprom owns its stake through Urengoygazprom.[8][9]

A new dispute between the Farkhad Akhmedov's holding company REDI and Gazprom arose in 2008 over a gas price and access to the gas transportation system.[1]

In January 2011, a Russian power producer Inter RAO announced that it will acquire REDI, which holds 49% take in Northgas for US$1.5 billion. Inter RAO made similar offer to Gazprom to acquire a full control of the company.[10] However, this transaction was not completed. In 2012, the stake owned by REDI was acquired by Novatek for $1.4 billion.[4][11] In 2013, Gazprom transferred additional 1% of shares to Novatek and two companies became equal partners.[12]

References

  1. ^ a b Kazmin, Roman (2008-08-01). "Northgas in conflict with Gazprom over Urengoy and transit". ICIS Heren. Archived from the original on 2021-07-27. Retrieved 2011-02-19.
  2. ^ a b ""Нортгаз" остановит производство" [Northgas stops production]. Kommersant (in Russian). 2003-01-20. Retrieved 2021-07-31.
  3. ^ "Ruhrgas sounds out possibilities with Russian independents". ICIS Heren. 2004-05-28. Archived from the original on 2021-07-27. Retrieved 2011-02-19.
  4. ^ a b c Dzyadko, Timofey (2012-11-07). ""Газпром" разделит "Нортгаз" с главным конкурентом" [Gazprom splits Northgas with its main competitor]. Vedomosti (in Russian). Retrieved 2021-07-31.
  5. ^ a b "Focus on Gazprom production". ICIS Heren. 2006-03-15. Archived from the original on 2021-07-27. Retrieved 2011-02-19.
  6. ^ a b Grib, Natalya (2004-08-30). ""Газпром" не оценил "Нортгаз"" [Gazprom did not appreciate Northgas]. Kommersant (in Russian). Retrieved 2021-07-31.
  7. ^ Molina, Alcira (2005-06-10). "Gazprom ends Northgas face off". Upstream Online. NHST Media Group. Retrieved 2011-02-19.
  8. ^ a b Grib, Natalya; Butrin, Dmitry (2005-06-14). ""Нортгаз" вошел в "Газпром" по-английски" [Northgas went to Gazprom according to the British law]. Kommersant (in Russian). Retrieved 2021-07-31.
  9. ^ ФАС запросила у Газпрома информацию о консолидации Нортгаза [FAS has asked Gazprom about consolidation Northgas]. Rossiyskaya Gazeta (in Russian). 2005-08-01. Retrieved 2011-02-19.
  10. ^ Lyrchikova, Anastasia (2011-01-17). "Northgas stake seller sees $1.5 bln Inter RAO bid". Reuters. Archived from the original on March 6, 2016. Retrieved 2011-02-19.
  11. ^ Mordyushenko, Olga (2012-11-07). "Фархад Ахмедов сдает "Нортгаз"" [Farkhad Akhmedov hands over Northgas]. Kommersant (in Russian). Retrieved 2021-07-31.
  12. ^ Serov, Mikhail; Solodovnikova, Anna (2013-02-27). "НОВАТЭК получил паритет в "Нортгазе"" [Novatek gains parity in Northgas]. Kommersant (in Russian). Retrieved 2021-07-31.