Northgas

Northgas (Russian: 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]

Northgas
Typeprivate
Industryoil and gas industry
Founded1993
Headquarters
Russia
Key people
Boris Zimin (Director General)
Productsnatural gas
Revenue23,079,100,000 Russian ruble (2017) 
OwnerGazprom
REDI
Websiteww.northgas.ru

History

Northgas was founded in 1993 to develop the North-Urengoy field. The company was controlled by Gazprom through its subsidiary Urengoygazprom, which owned a 51% stake in Northgas.[2] 44% of the company was owned by Bechtel Energy, while Tansley, an offshore company owned by the Russian businessman Farkhad Akhmedov had a stake of 5%. A license for the North-Urengoy field was transferred from Urengoygazprom to Northgas in 1994.[3] 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. Its ownership was transferred to the holding company REDI.

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.[3][4] Gazprom owns its stake through Urengoygazprom.[5]

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.[6]

References
  1. "Northgas in conflict with Gazprom over Urengoy and transit". ICIS Heren. 2008-08-01. Retrieved 2011-02-19.
  2. "Ruhrgas sounds out possibilities with Russian independents". ICIS Heren. 2004-05-28. Retrieved 2011-02-19.
  3. "Focus on Gazprom production". ICIS Heren. 2006-03-15. Retrieved 2011-02-19.
  4. "Gazprom ends Northgas face off". Upstream Online. NHST Media Group. 2005-06-10. Retrieved 2011-02-19.
  5. 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.
  6. Lyrchikova, Anastasia (2011-01-17). "Northgas stake seller sees $1.5 bln Inter RAO bid". Reuters. Retrieved 2011-02-19.
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