Gazprom, represented by its German subsidiary ZGG GmbH, signed an agreement Monday with Levit and Swgi Growth Fund (Cyprus) Limited.
Under the deal, slated to be completed by August, Gazprom will hold two out of eight seats on Novatek's board of directors, which will give it influence on the company's operations under the Novatek charter.
The deal will also stipulate that Gazprom or its affiliates hold no more than 19.9% stock in Novatek at any one time.
The draft says Novatek will continue to expand its operations in developing oil fields and building up a resource base. Novatek's marketing policy will also be adjusted, and it will supply gas to Russian regions.
"Acquisition of stock in Novatek, a dynamically developing gas company, will allow Gazprom to use additional resources to supply gas to Russian consumers and pursue a coordinated policy in developing the Russian gas market," Gazprom said.
Novatek's comments on the deal were also upbeat.
"Gazprom's arrival as ZGG GmbH as a strategic investor will enable development of the resource base, raise production targets and help increase volumes of hydrocarbon processing," the company said.
