Russian largest independent gas producer and LNG player Novatek has begun commercial production at the South-Khadyryakhinskoye gas field.
Novatek said on Wednesday that the field holds an estimated capacity of one billion cubic meters per annum.
Novatek’s head Leonid Mikhelson said: “ The South-Khadyryakhinskoye field is located in close proximity to the company’s existing infrastructure, which allowed us to quickly commence initial gas production and optimize the field’s capital costs.
“ The new gas production capacity will contribute immediately to incremental growth in our domestic natural gas production connected to the United Gas Supply System. ”
The South-Khadyryakhinskoye field is located in the Purovsky district of the Yamal-Nenets Autonomous Region. Novatek subsidiary, Novatek-Tarkosaleneftegas, holds the field’s license for the exploration and production, which was acquired in December 2017 .
Namely, Novatek bought firms South-Khadyryakhinskoye and Eurotek from AR Oil & Gas, a joint venture of Neftegazholding and Repsol.
As of December 31, 2018, the field’s reserves under the Russian reserves classification totaled about 28 billion cubic meters of natural gas.