Novatek Wins Another Arctic Block
Russia’s Novatek has won exploration and production rights for the Bukharinsky block on the Gydan Peninsula at auction, the gas company reported on December 27.
The 2,447-km2 block, which straddles the shore of the Ob Bay and borders Novatek’s Soletsko-Khanaveyskoye field and the Trekhbugorny licence area, holds 1.19 trillion m3 of gas and 74mn mt of liquids, according to Novatek. The company paid rubles 2.35bn ($38mn) for a 27-year licence for the block.
NGW reported in October that Russia’s government had issued a decree to auction off Bukharinsky, setting the starting price for bids at rubles 2.13bn. The terms of the contest meant that Novatek was effectively the only company eligible to participate.
In a statement, Novatek said the licence addition would add resources to underpin development of another LNG export project, similar in scope to Arctic LNG-2.