Novatek Buys Assets from Repsol JV

Leading Russian independent gas producer Novatek said December 6 it has acquired two subsidiaries – South-Khadyryakhinskoye and Eurotek – from the Repsol-Alliance Neftegaz joint venture, AR Oil&Gas. It did not disclose the transaction value.

South-Khadyryakhinskoye holds the exploration and production licence for the South-Khadyryakhinsky licence area, estimated to hold 228mn barrels of oil equivalent, and is near infrastructure of the North-Khancheyskoye field developed by Novatek's subsidiary.  

Eurotek holds the hydrocarbon exploration and production license for the Syskonsynyinsky licence area in the Khanty-Mansiysk Autonomous Region, 120 km northwest of Nyagan. The licence contains estimated resources of 48mn boe, and produced 799mn m³ gas and 6,600 metric tons of condensate in 2016.

CEO Leonid Mikhelson said the acquisition would increase Novatek’s resource base in its core area of operations. There was no immediate statement from Repsol although its website describes Syskonsyninskoye, which began production late February 2013, as an important gasfield. Late in November Novatek bought another company with current gas and condensate production in the Yamal Nenets region.