Production
Our core fields and license areas are located in the Yamal-Nenets Autonomous Region, the world’s largest natural gas producing region, which accounts for over 87% of Russia’s natural gas production and approximately 18% of the world’s. The geographical location of our fields in this gas-rich hydrocarbon basin offers vast opportunities for increasing shareholder value through low-risk, low-cost production and effective reserve replacement. With more than thirteen years of operational history in this region, we are in an optimal position to capitalize on these opportunities.
Gross production for the fourth quarter 2011 totaled 14.53 billion cubic meters of natural gas and 1,063 thousand tons of liquids (gas condensate and crude oil). Gross natural gas production increased by 3.64 billion cubic meters, or by 33.4%, and gross liquids production increased by 67 thousand tons, or by 6.7%, as compared with the corresponding gross production in the fourth quarter 2010.
In 2011, gross production for NOVATEK totaled 53.54 billion cubic meters of natural gas and 4,124 thousand tons of liquids. Natural gas production increased by 15.76 billion cubic meters, or by 41.7%, whereas liquids production increased by 492 thousand tons, or by 13.5% as compared with the corresponding gross production in 2010.
NOVATEK’s hydrocarbon production
Gross production | 1Q2011 | 1Q2012 | Q-o-Q% |
|---|---|---|---|
Natural gas, bcm | 13.43 | 14.66 | 9.2% |
Liquids, mt | 1,025 | 1,084 | 5.8% |