UPDATE: Novatek CEO says negotiations on Arctic LNG-2 stake sale continue

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MOSCOW, Oct 25 (PRIME) -- Russian gas producer Novatek continues negotiations with potential partners on the sale of a stake in the Arctic LNG-2 liquefied natural gas project and wants to retain a 60% stake, CEO Leonid Mikhelson said at a meeting with the government on Thursday.

“We plan to retain 60% in this project. An agreement on 10% has already been signed -- Total joins in the project. We are (negotiating) a stake sale with a wide range of other potential partners,” Mikhelson said.

CFO Mark Gyetvay said that Novatek sees the price estimate of the Arctic LNG-2 stake to be sold to Total as conservative. He also said that it will be disclosed during closure of the deal.

The agreement on stake sale to Total was signed in May. Novatek expects to keep 60% in the project, but may make a decision to lower its stake below controlling, and in this case Total may boost its interest to 15%, Mikhelson said then.

LNG production at the Arctic LNG-2 may start in 2023, according to an earlier statement by Total.

Mikhelson separately said on Thursday that Novatek estimates investment in the Novatek-Murmansk shipyard at 120 billion rubles. The company will not look for financial partners but is in negotiations to attract a management company.

(65.6299 rubles – U.S. $1)

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