By Alam John Paul
Moscow, PAO NOVATEK announced that Arctic LNG 1, a wholly owned subsidiary, won the auction for geological survey, exploration and production license for the subsoil area including the Soletsko-Khanaveyskoye field located on the Gydan peninsula in Yamal-Nenets Autonomous Region. The license area has estimated hydrocarbon resources of 2,183 billion cubic meters of gas and 212 million tons of liquids, or 16 billion barrels of oil equivalent according to the Russian resource classification system. The license term is 27 years and the auction resulted in one-time payment for the subsoil use in the amount of RR 2,586 million.
The new license area borders NOVATEK’s Trekhbugorniy and Gydanskiy license areas on the Gydan peninsula, and allows to create the resource base for the next LNG project similar to Arctic LNG 2, with liquefaction trains to be located at the Utrenniy terminal.
PAO NOVATEK is the largest independent natural gas producer in Russia, and in 2017, entered the global gas market by successfully launching the Yamal LNG project. Founded in 1994, the Company is engaged in the exploration, production, processing and marketing of natural gas and liquid hydrocarbons.
The Company’s upstream activities are concentrated mainly in the prolific Yamal-Nenets Autonomous Region, which is the world’s largest natural gas producing area and accounts for approximately 80% of Russia’s natural gas production and approximately 15% of the world’s gas production. NOVATEK is a public joint stock company established under the laws of the Russian Federation. The Company’s shares are listed in Russia on Moscow Exchange (MOEX) and the London Stock Exchange (LSE) under the ticker symbol “NVTK”.
