Photo: Courtesy of Novatek

Novatek expands LNG feedgas acreage

Russia’s largest independent natural gas producer and LNG operator Novatek has secured a geological survey, exploration and production license for the North-Gydanskiy arctic block.

Novatek expands LNG feedgas acreage
Courtesy of Novatek

This was executed through Arctic LNG 1, a subsidiary of Novatek.

The the North-Gydanskiy block is located in the Yamal-Nenets Autonomous Region on the Gydan Peninsula and partly in the shallow waters of Gydan Bay of the Kara Sea.

The license for geological exploration of mineral resources, exploration and production of hydrocarbons is issued for a period of 30 years.

The auction resulted in a one-time payment of 775.4 million rubles for the use of subsoil.

According to the Russian resource classification system, the hydrocarbon resource potential of the site is estimated at 9.8 billion barrels of oil equivalent of hydrocarbons.

The location is in close proximity to the existing assets of Novatek on the Gydan Peninsula. The acquisition of this block will expand the company’s resource base for implementing new LNG projects.