Novatek’s 2017 production dips, natural gas sales up

One of Russia’s largest independent natural gas producers, Novatek, reported a decrease in hydrocarbon production and a rise in natural gas sales volumes, which now include LNG. 

The company said that the hydrocarbons production totaled 513.3 million barrels of oil equivalent (boe), including 63.39 billion cubic meters (bcm) of natural gas and 11,772 thousand tons of liquids (gas condensate and crude oil), resulting in a decrease in total hydrocarbons production by 33.7 million boe, or by 6.2 percent as compared with the twelve months 2016.

Preliminary natural gas sales volumes, including LNG, aggregated 65.01 bcm, which was 0.5 percent higher compared with the twelve months 2016. In December 2017, after the commencement of LNG production at the first train of Yamal LNG project, Novatek sold its first cargo of LNG.

The Company processed 11,445 thousand tons of unstable gas condensate at the Purovsky processing plant, representing a 7.4 percent decrease in daily average processing volumes as compared with the corresponding volumes processed in the prior reporting period.

Novatek processed 6,961 thousand tons of stable gas condensate at the Ust-Luga Complex, representing a 0.9 percent increase in daily average volumes processed at the facility in 2017.

Preliminary 2017 petroleum product sales volumes aggregated 6,743 thousand tons, including 4,102 thousand tons of naphtha, 1,121 thousand tons of jet fuel, and 1,520 thousand tons of fuel oil and gasoil. Export sales of stable gas condensate amounted to 342 thousand tons.

As of December 31, 2017, Novatek had 1.0 billion cubic meters of natural gas and 754 thousand tons of stable gas condensate and petroleum products in storage or transit and recognized as inventory.

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