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Gazprom Neft Raises SeverEnergia Stake For $980 Million

|Includes:Gazprom Neft PJSC ADR (GZPFY), NOVKY

Gazprom Neft has entered into an agreement with Novatek to acquire an additional 9.8% stake in SeverEnergia for $980 million. Novatek currently holds 59.8% in the JV, with Gazprom Neft holding the rest.

Novatek Chairman Leonid V. Mikhelson commented: "Our decision to sell this equity stake and equalize our respective ownership interest is based on our long-term strategic partnership with Gazprom Neft and a successful track record of asset management on a parity basis. Moreover, it confirms the existing agreements on sales of natural gas and liquid hydrocarbons produced by SeverEnergia"

Post-transaction SeverEnergia ownership: Gazprom Neft (50%) and Novatek (50%).

In September 2013, Rosneft acquired a 19.6% stake in SeverEnergia from Enel for 1.8 billion.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Stocks: GZPFY, NOVKY