Novatek secures new license areas on Gydan Peninsula

Russia’s Novatek, the oprator of the giant Yamal LNG project, said it has obtained the right to explore and appraise new licenses in the central part of the Gydan Peninsula in the Arctic.

The license duration is seven years for the West-Solpatinskiy, North-Tanamskiy and Nyavuyahskiy license areas located in the Yamal-Nenets Autonomous Region, Novatek said in a statement on Thursday.

Novatek’s CFO Mark Gyetvay said earlier this year the company is looking into the long-term feasibility of a new LNG project in the Gydan Peninsula.

As of 1 January 2016, the recoverable resources for the Gydan Peninsula license areas under the Russian reserve classification methodology equal about 560 billion cubic meters of natural gas and about 57 million tons of liquid hydrocarbons, according to Novatek.

Leonid Mikhelson, chief executive and co-owner of Novatek said that the company continues to expand its resource base in the Gydan Peninsula as an important element in Novatek’s long-term development strategy.

“In 2017, we plan to launch the first LNG train at the Yamal LNG project, and we are actively studying the region’s geological potential for implementing future LNG projects,” Mikhelson said.