Novatek win rights to new Arctic block
Russia's Novatek has won a licence to explore and develop the Severo-Gydansky (North-Gydansky) block on the shore of the Gydan peninsula, as it looks to expand its resource base in the Russian Arctic to underpin future LNG projects.
Novatek paid 775mn rubles ($10.2mn) for the 30-year licence for Severo-Gydansky, which is partly onshore and partly in the shallow waters of the Gydan bay of the Kara Sea, the company said on March 24. It is estimated to contain 9.8bn barrels of oil equivalent in resources, according to Novatek. Its gas resources have previously been assessed at 270bn m3.
Novatek's 16.5mn mt/yr producing Yamal LNG plant is located on the opposite side of the Gulf of Ob on the Yamal peninsula. The company is preparing to launch its second export project, the 19.8mn mt/yr Arctic LNG-2, on Gydan in 2023, and plans to take a final investment decision on its third plant, the 5-6mn mt/yr Obsk LNG, later this year.
The Severo-Gydansky licence was won by Novatek subsidiary Arctic LNG 1. The company also has plans for a 19.8mn mt/yr project called Arctic LNG-1, which according to Russia's latest LNG strategy is due online after 2027. Arctic LNG-1 will be supplied by gas from the Soletsko-Khanaveyskoye, Geofizicheskoye and Trekhbugornoye fields on Gydan.