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Exploration Activities

NOVATEK aims to expand its 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. The Company ensures the efficiency of geological exploration work by deploying state-of-the-art technologies and relying on the experience and expertise of the specialists in its geology department, and the Company’s Scientific and Technical Center located in Tyumen.

The Company uses a systematic and comprehensive approach to exploration and development of its fields and license areas, from the collection and interpretation of seismic data to the creation of dynamic field models for the placement of exploration and production wells. We employ modern geological and hydrodynamic modeling as well as new well drilling and completion techniques to maximize the ultimate recovery of hydrocarbons in a cost effective and environmentally prudent manner.

In 2019, NOVATEK continued exploration on the Yamal and Gydan Peninsulas to expand the resource base.

A prospecting well discovered at the Nyakhartinskoye field with one gas and six gas condensate deposits. The well tested at a flow rate of up to 411 mcm/day of gas and 192 tons/day of stable condensate (1,663 barrels/day). The field borders next to the well-developed infrastructure of the Yurkharovskoye field and is an important discovery for the Company to maintain its production within the pipeline gas area. Aggregate natural gas and gas condensate reserves approved by the State Reserves Commission according to the Russian standards amounted to 59.7 bcm and 2.1 mmt, respectively.

Prospecting well tests at the Utrenneye field confirmed the productivity of two gas condensate deposits in the Middle Jurassic layers. Total Jurassic deposits reserves of the Utrenniy license area held by Arctic LNG 2 amount to 570.7 bcm of gas and 61.2 mmt of gas condensate. Taking into account new deposits, the field’s total reserves under the Russian reserves classification methodology aggregated 2.14 tcm of gas and 126 mmt of liquid hydrocarbons. The reserves were approved by the State Reserves Commission. By adding new deposits we improve the field’s resource potential and open up additional opportunuties in the execution of Arctic LNG 2.

We actively developed the Gydanskoye field. With two prospecting wells drilled we discovered four new deposits, of which three are located in the Achimov deposits. The increase in reserves of new deposits amounted to 290 bcm of gas and 33.7 mmt of gas condensate.

An exploration well drilled in the Ob Bay at the Geofizicheskoye field achieved a significant increase in reserves totalling 184.7 bcm of gas and 4.7 mmt of gas condensate. The Geofizicheskoye field’s aggregate reserves under the Russian reserves classification methodology amount to 513 bcm of gas and 8.1 mmt of condensate.

The Samburgskiy license area continues to see additions of Achimov gas condensate reserves within the Urengoyskoye field. In 2019, with exploration and production wells drilled reserves growth totaled 52 bcm of gas and 9.7 mmt of gas condensate.

In 2019, we continued 3D seismic exploration at the Gydanskiy, West-Solpatinskiy, Nyavuyakhskiy, Ladertoyskiy, West-Yurkharovskiy, North-Russkiy, and Nyakhartinskiy license areas as well as Verkhnetiuteyskoye and West-Seyakhinskoye fields.

In order to maintain pipeline gas production levels and unstable gas condensate volumes sent to the Purovsky Plant, we continued exploration in the fields and license areas within the Nadym-Pur-Taz area located in the YNAO.

In the Kharbeyskoye license area an exploration well was being drilled to confirm oil and gas reserves potential and to determine the field’s productivity for future development.

Our successful exploration activities during 2019 contributed 657 bcm of gas and 40 mmt of liquids to NOVATEK’s Russian hydrocarbon resource base, now amounting to 7,047 bcm of gas and 798 mmt of liquid hydrocarbons under the Russian reserves classification methodology.