Russia’s largest independent gas producer and LNG developer, Novatek said its joint venture Arcticgas won the bid for a geological survey, exploration and production license for the Osenniy subsoil area located in the Yamal-Nenets Autonomous Region.
The license area contains estimated hydrocarbon resources of 4,411 million barrels of oil equivalent, according to the Russian resource classification.
The Osenniy license area borders Arcticgas’ Samburgskiy license area and expands the Company’s hydrocarbon resource base in the Nadym-Pur-Taz region of YNAO.
Novatek considers this new license acquisition to complement its significant long-term projects to increase deeper-layer hydrocarbon production.
According to the chief executive Leonid V. Mihkelson , the acquisition of the Osenniy license area supports Novatek’s recently announced long-term strategy of increasing its natural gas and gas condensate production within reach of the Unified Gas Supply System as well as its goal of increasing its exploration activities.
“The new license area is part of our strategy to drill deeper into the liquids-rich formations to ensure we fully load our processing facilities to maximize risk-adjusted margins for many years to come,” he said.