PAO NOVATEK is the largest independent natural gas producer in Russia. The Company is principally engaged in the exploration, production, processing and marketing of natural gas and liquid hydrocarbons and have 25 years of operational experience in the Russian oil and natural gas sector.
Our principal operating areas are concentrated in the Yamal-Nenets Autonomous Region (YNAO) in Western Siberia. The YNAO is the most significant gas producing region in Russia, accounting for approximately 80% of Russia’s natural gas production and approximately 16% of global gas production.
As of 31 December 2019, we had 16.3 billion barrels of oil equivalent (boe) of SEC proved reserves. Most of our reserves are located onshore or can be developed from onshore locations and are attributed to the conventional categories.
We aim to expand our resource base through geological exploration at fields and license areas not only in close proximity to existing transportation and production infrastructure, but also in new potentially prospective hydrocarbon areas. In 2019 the replacement rate of our proved reserves amounted to 181%.
We process our unstable gas condensate at our Purovsky Plant, which produces stable gas condensate and liquefied petroleum gas (LPG). We process our stable gas condensate at the Ust-Luga Complex on the Baltic Sea. The Complex produces light and heavy naphtha, jet fuel, heating oil and gasoil.
NOVATEK sells natural gas within the Russian Federation as well as exports natural gas in the form of LNG. NOVATEK sells liquid hydrocarbons (stable gas condensate, petroleum products, light hydrocarbons, LPG and crude oil) domestically and internationally.
The main production assets of NOVATEK are located in the Far North, a harsh Arctic region with rich mineral deposits and fragile, easily vulnerable nature. In its activities, the Company pays significant attention to environmental issues.
NOVATEK has been taking care to reduce air pollutant and greenhouse emissions as well as doing everything possible for climate conservation. We are committed to sustainable water use and efficient wastewater treatment. We do not operate in water-short regions while our environmental policy promotes prudent water consumption. We are engaged in land protection and reclamation, as well as waste management by separating and treating recyclable waste.
Social Policy and Charity make up an important part of NOVATEK's activities. In 2019, the Company continued to pay close attention to projects aimed at supporting the culture, preserving and revitalizing national values and spiritual legacy of Russia, promoting and integrating the Russian art into the international cultural space, and developing mass and high-performance sports. NOVATEK enters into agreements with regional governments across the Company's geographical footprint and implements programs to improve living standards and preserve the distinctive cultural identity of the indigenous peoples of the Far North.
NOVATEK strives to commit to the highest standards of corporate governance. We believe that such standards are an essential prerequisite to business integrity and performance and provide a framework for socially responsible management of the Company’s operations. The Company has established an effective and transparent system of corporate governance complying with both Russian and international standards. NOVATEK’s supreme governing body is the General Meeting of Shareholders. The corporate governance system also includes the Board of Directors, the Board Committees, and the Management Board, as well as the system of internal control and audit bodies.