EuroChem sells a Russian gas asset to Novatek

Zug (Switzerland), Nov 23 :   Swiss fertiliser multinational EuroChem Group on Thursday announced the sale of its Russia-based gas producing company Severneft-Urengoy to Russian natural gas producer Novatek.

The Eurochem statement on the sale did not disclose the price and terms of the deal. 

Gas exploration and production company Severneft-Urengoy, operating in the Yamal-Nenets Autonomous Area in Russia, was acquired by EuroChem in 2012 for $403 million, it said. 

"The total resource potential of the site, according to the Russian classification as of December 31, 2016, is 918 million barrels of oil equivalent of hydrocarbons," it said

"The sale of Severneft-Urengoy will enable the Group to focus on the exploration and subsequent development of gas condensate fields in the Astrakhan and Saratov regions in Russia, and the Kamenkovsky gas field in Kazakhstan, to better meet EuroChem's internal gas needs," the company said. 

"While these gas fields continue to be developed, EuroChem will buy gas from unaffiliated parties," it added.