Northgas was founded in 1993 to develop the North-Urengoy field.[2] The company was controlled by Gazprom through its subsidiary Urengoygazprom, which owned a 51% stake in Northgas.[3] 44% of the company was owned by Bechtel Energy, while Tansley, an offshore company owned by the Azerbaijani businessman Farkhad Akhmedov had a stake of 5%.[4] A license for the North-Urengoy field was transferred from Urengoygazprom to Northgas in 1994.[5] 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.[6][4] Its ownership was transferred to the holding company REDI.[2][6]
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.[5][7][8] Gazprom owns its stake through Urengoygazprom.[8][9]
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.[10] However, this transaction was not completed. In 2012, the stake owned by REDI was acquired by Novatek for $1.4 billion.[4][11] In 2013, Gazprom transferred additional 1% of shares to Novatek and two companies became equal partners.[12]
