Novatek Starts Commercial Production at Yarudeyskoye Field

Novatek announced the start of commercial production at the major Yarudeyskoye oil field, whose planned daily production level equivalent is approximately 3.5 million tons of crude oil on an annualised basis.  

‘Thirty-six production wells have been drilled and the field’s infrastructure includes a central oil treatment facility, oil and gas gathering systems, a pumping station, and crude oil and gas pipelines linking the field to the trunk pipeline systems’ reads the statement published on Tuesday.  

The Yarudeyskoye field, which is developed by a joint venture between Novatek (51%) and Nefte Petroleum Limited (49%), can “significantly contribute” to its free cash flow generation, Russia’s largest independent natural gas producer argued.  

“The launch of the Yarudeyskoye field is another important milestone in the Company’s history as it represents successful completion of our first major crude oil development project. We have successfully ramped up our liquids production over the past three years, and the Yarudeyskoye field allows us to sustain double-digit growth rates next year” Leonid Mikhelson, Chairman of the Management Board of Novatek, commented.