Russian Novatek Buys More Upstream Gas

Russian independent Novatek has bought Chernichnoye from a fellow Russian company Mangazeya, it said December 11, providing no financial details. The deal is expected to close in early 2018.

Chernichnoye holds the hydrocarbon exploration and production licence for the field of that name, close to Novatek's infrastructure. The licence contains estimated hydrocarbon resources of 179mn barrels of oil equivalent according to the Russian resource classification as of 31 December 2016.

According to Novatek CEO Leonid Mikhelson: “We have concluded an agreement to acquire another field that will contribute to the company’s resource base and future production connected to the unified gas supply system. Our strategy is focused on acquiring new producing fields to load our processing capacities for a longer time period as well as fully utilise our existing transport infrastructure. This will provide additional economic value and growth of the company’s financial and operational metrics."