Sovcomflot, NOVATEK, COSCO, Silk Road Fund sign joint venture agreement


During the 2019 St. Petersburg International Economic Forum, PJSC NOVATEK, PAO Sovcomflot, China’s COSCO Shipping Corporation Limited, and the Silk Road Fund Co., Ltd, signed a four-party agreement to establish a joint venture Maritime Arctic Transport LLC.

The signing ceremony was attended by: Maxim Akimov, Deputy Prime Minister of Russia; Yury Tsvetkov, Russia’s Deputy Minister of Transport and Head of the Federal Agency for Maritime and River Transport; Oxana Tarasenko, Russia’s Deputy Minister of Economic Development.

The agreement was signed by: Sergey Frank, President and CEO of Sovcomflot; Leonid Mikhelson, Chairman of the Management Board of NOVATEK; Xui Lizhong, Chairman of the Board of Directors of COSCO Shipping Corporation; Wang Yanzhi, President of the Silk Road Fund.

The focus of the Maritime Arctic Transport joint venture is to manage an icebreaking tanker fleet of Arctic ice-class vessels, comprising existing and new vessels, engaged in the transportation of LNG for current and planned NOVATEK projects, namely: Yamal LNG; Arctic LNG 2 and others.

Sergey Frank, President and CEO of Sovcomflot, said:

"The sheer scale and level of technical complexity of the new international project to provide safe, year-round, transportation for LNG across the Northern Sea Route have required the combination of a whole range of intellectual, technological, human and financial resources, from leading Russian and Chinese organisations and businesses.”

He added:

“We are pleased to participate in this Russian-Chinese consortium in such an important energy project for the economies of our countries. We are pleased to contribute to the joint venture the unique experience and expertise accumulated over ten years by Sovcomflot, gained whilst successfully operating a unique fleet of specialised vessels, serving large oil and gas projects in the Arctic and subarctic marine basins.”

“The project's transport and logistics are consolidated around a single operational platform that will contribute to increased efficiency, safety, and further optimisation of the entire cargo transit traffic system through the waters of the Northern Sea Route, including the Polar Silk Road project", emphasised Sergey Frank.

SCF Press Office

Sovcomflot (SCF Group) is one of the world's leading energy shipping companies, specialising in the transportation of crude oil, petroleum products, and liquefied gas, as well as the servicing of offshore oil and gas exploration and production. The company’s fleet includes 146 vessels with a total deadweight of over 12.8 million tonnes. More than 80 vessels have an ice class.

Sovcomflot is involved in servicing large oil and gas projects in Russia and around the world: Sakhalin-1; Sakhalin-2; Varandey; Prirazlomnoye; Novy Port; Yamal LNG, and Tangguh (Indonesia). For the projects it serves in the Arctic and subarctic sea basins, the company's vessels had transported more than 250 million tonnes of crude oil and some 50 million cubic meters of LNG.

The start of the successful cooperation between Sovcomflot and NOVATEK began in 2010, following the organisation of experimental high-latitude voyages along the Northern Sea Route which helped ground the technical possibility and economic feasibility of energy shipping with large-tonnage vessels along the Northern Sea Route. Sovcomflot was directly involved in developing the transport component of the successfully implemented Yamal LNG project and, today, operates the world's first Arctic LNG carrier Christophe de Margerie.

Sovcomflot’s is headquartered in Saint Petersburg, with offices in Moscow, Novorossiysk, Murmansk, Vladivostok, Yuzhno-Sakhalinsk, London, Limassol, and Dubai.