Moscow, 8 November 2018. PAO NOVATEK (“NOVATEK” and/or the “Company”) announced today that OOO NOVATEK-Yurkharovneftegas, a wholly owned subsidiary, 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. The license term is 27 years and the auction resulted in one-time payment for the subsoil use in the amount of RR 2,041 million rubles.
The South-Leskinskiy license area is located in close proximity to NOVATEK’s existing licenses on the Gydan peninsula. The new license is consistent with the Company’s strategy to expand our hydrocarbon resource base on the Yamal and Gydan peninsulas to increase natural gas and liquid hydrocarbons production.
PAO NOVATEK is one of the largest independent natural gas producers in Russia, and in 2017, entered the global LNG market by successfully launching the Yamal LNG project. Founded in 1994, the Company is engaged in the exploration, production, processing and marketing of natural gas and liquid hydrocarbons. Upstream activities of the Company’s subsidiaries and joint ventures are concentrated mainly in the prolific Yamal-Nenets Autonomous Area, which is the world’s largest natural gas producing area and accounts for approximately 80% of Russia’s natural gas production and approximately 15% of the world’s gas production. NOVATEK is a public joint stock company established under the laws of the Russian Federation.