Russian Firms Launch Northern Minnow

A public-private Russian producer Arcticgas has begun commercial gas production at the East-Urengoiskoye+North-Esetinskoye field in the Samburgskiy licence area, with estimated annual production capacity of more than 1bn m³ of gas and 0.2mn metric tons (mt) of gas condensate, Novatek said October 10. Its partner is Gazprom Neft.

The output is very small by Russian standards but it is very close to Novatek's infrastructure, which allowed Novatek to quickly bring it onstream and optimise the capital costs.

The field will contribute to incremental growth in Novatek's domestic natural gas production near the Gazprom-operated gas transmission system. Arcticgas holds the field’s licence for the exploration and production. As of December 31 last year, the field’s reserves under the Russian reserves classification were about 94bn m³ of natural gas and 27mn mt of liquids.