Pao Novatek secures new licence areas in Russia

Russian natural gas producer Pao Novatek’s subsidiaries OOO Arctic LNG-2 and OOO Novatek-Yurkharovneftegas have secured new licence areas in the Yamal and Gydan peninsulas.

The licences have been acquired for a combined cost of $127m and will allow Novatek to expand its resource base for implementing new liquefied natural gas (LNG) projects.

OOO Arctic LNG-2 has been awarded the bid in connection with a geological survey, exploration and hydrocarbons production licence for the subsoil area including the Shtormovoye field within the Gydan peninsula.

Based on the Russian resource classification, the licence area comprises estimated hydrocarbon resources of 7,932mmboe.

Arctic LNG-2 paid RUR1.04bn ($17.76) to obtain the licence, which runs for a period of 30 years.

On the other hand, OOO Novatek-Yurkharovneftegas won the auction for the subsoil area, including the Verhnetiuteyskoye and the West-Seyakhinskoye fields by paying RUR6.42bn ($109.72m).

Located on the Yamal peninsula and adjacent to the South-Tambeyskoye field, the licence area comprises estimated hydrocarbon resources of 8,747mmboe and will run for 27 years.

Pao Novatek was established in 1994 and is engaged in the exploration, production, processing and marketing of natural gas and liquid hydrocarbons.

The company undertakes upstream activities primarily in the Yamal-Nenets Autonomous Region, which is said to be the world’s largest natural gas producing area and produces around 80% of Russia’s natural gas production.