Russia’s Novatek secures new Gydan exploration license

Russia’s largest independent natural gas producer and LNG export player, Novatek has won a new exploration license on the Gydan peninsula.

Novatek-Yurkharovneftegas, a unit of Novatek, won the auction for geological survey, exploration and production license for the South-Leskinskiy subsoil license area on the Gydan peninsula in the Krasnoyarsk Territory.

The license area has estimated hydrocarbon resources of 3.5 billion barrels of oil equivalent according to the Russian resource classification system, according to a Novatek statement.

The license term is 27 years and Novatek paid 2.04 billion rubles ($30.7m) for the license. It is located close to Novatek’s existing licenses on the Gydan peninsula.

The license is consistent with the company’s strategy to expand its hydrocarbon resource base on the Yamal and Gydan peninsulas to increase natural gas and liquid hydrocarbons production, the statement said.