Novatek awarded licenses for hydrocarbons reserves in Northern Russia

Russia’s LNG major Novatek has won licenses to explore and produce hydrocarbons in two areas in the Yamal-Nenets region in Northern Russia.

Novatek said on Tuesday that its wholly-owned subsidiary Novatek-Yurkharovneftegas won the auction for geological survey, exploration and production license for the South-Yamburgskiy subsoil area in the Nadym District of the Yamal-Nenets autonomous region.

The license is located close to the North-Urengoyskoye field of Novatek’s Nortgas joint venture.

The license area has estimated hydrocarbon resources of 506 billion cubic meters of natural gas and 126 million tons of liquids, or 4.3 billion barrels of oil equivalent, according to the Russian resource classification system.

The license term is 25 years, and the auction resulted in a one-time payment for the subsoil use of 1,066 million Russian Rubles ($17 million).

The second license was won by the same subsidiary in the East-Ladertoyskiy subsoil area on the Gydan Peninsula.

The license area has estimated hydrocarbon resources of 184 billion cubic meters of natural gas and 32 million tons of liquids or 1.5 billion barrels of oil equivalent.

The license term is also 25 years, and the auction resulted in a one-time payment for the subsoil use of 81 million Russian Rubles ($1.3 million).

The license area borders Novatek’s Ladertoyskiy, Nyavuyahskiy, West-Solpatinskiy, and Central-Nadoyakhskiy subsoil areas on the Gydan Peninsula.

Novatek added that the new license acquisition was in line with the company’s strategy to expand its resource base on the Yamal and Gydan peninsulas.