The field was discovered in 1970 and is located within the polar circle on the southeast shore of the Tazov Peninsula. The Company’s wholly-owned subsidiary OOO NOVATEK-Yurkharovneftegas holds the license for exploration and production of hydrocarbons at the field which is valid until 2034. The field has been producing natural gas and gas condensate since 2003 and is connected to the UGSS via pipeline which enables the transport of up to 34 bcm of natural gas per annum. In September 2008, an 87 kilometer natural gas pipeline with diameter of 1,420 mm was launched which, together with the existing pipeline with diameter of 1,220 mm, covers the 103 kilometers from the field to the UGSS.
 

In 2009, the Yurkharovksoye field became the largest of the Company’s exploration and production assets in terms of reserves and production and is the driver for NOVATEK‘s mid-term production growth. The field has 22 productive hydrocarbon layers including one dry gas layer, 18 gas condensate layers and three gas condensate and oil layers which range in approximate depths of 1,000 meters to 2,950 meters.
 

In October 2009, NOVATEK launched the second stage of the second phase of development at the Yurkharovskoye field, which added additional production capacity of approximately seven bcm of natural gas and approximately 600 thousand tons of unstable gas condensate. As a result, the field’s annual natural gas and gas condensate production capacity at the end of 2009 aggregated 23 bcm of natural gas and two million tons of gas condensate. 

 

In the first quarter of 2010, the Company launched a 40 thousand ton per annum methanol plant located on the territory of the Yurkharovskoye field eliminating the need to transport methanol to the field; thereby decreasing operating costs and the associated environmental risks related to its transportation.