Novatek Secures More Yamal Acreage

Russian independent Novatek has secured more acreage in the prolific Yamal and Gydan peninsulas in the Arctic, it said August 25, following auctions of licences. This acquisition "significantly expands the company’s resource base for implementing new LNG projects," it said.

Licensees are subsidiaries Arctic LNG-2 and Yurkharovneftegas. Confusingly there is no Arctic LNG-1, as that project is known as Yamal LNG.

Arctic LNG-2 won the bid for a geological survey, exploration and hydrocarbons production licence for the subsoil area including the Shtormovoye field on the Gydan peninsula and is partly offshore in the Gydan and Ob bays in the Kara Sea bordering the company’s Utrennee field. Estimated hydrocarbon resources are 7,932mn barrels of oil equivalent, according to the Russian resource classification.

The licence term is 30 years and the auction resulted in a one-time payment for the subsoil use in the amount of roubles 1,040mn ($17.5mn). Yurkharovneftegas won the bid for a geological survey, exploration and hydrocarbons production license for the subsoil area including the Verhnetiuteyskoye and the West-Seyakhinskoye fields. This is on the Yamal peninsula, close to its South Tambeyskoye field, and contains estimated hydrocarbon resources of 8,747mn boe. The licence term is 27 years and the winning bid was roubles 6,425mn.

William Powell