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Exploration Activities

NOVATEK takes a systematic and comprehensive approach to developing hydrocarbon resources, from selecting methodologies for seismic surveys and well tests to generating rationales for the most appropriate field development system and actioning them. To achieve better efficiency in its activities, the Company applies state-of-the-art technology and leverages the experience and expertise of its geological teams. We employ modern techniques for drilling and completion, geophysical logging and data processing and interpretation from as early as the prospecting stage.

The Company’s scientific and research center in Tyumen is the focal point for analyzing and compiling data and building forecasts. The Laboratory and Research Center – tasked with testing and studying core plugs, fluid samples, drilling muds, frac fluids, proppants, and the thermal and physical properties of permafrost – was inaugurated in May 2022 to enable an even better research.

The Company aims to expand its resource base by conducting geological exploration at fields and license areas not only in close proximity to existing transportation and production infrastructure but also in new and promising hydrocarbon areas. With this approach, we are able to carry out prospecting, exploration and production of hydrocarbons in a cost-effective and environmentally prudent manner.

In 2022, NOVATEK conducted the bulk of its geological exploration on the Yamal and Gydan peninsulas to ensure the resource base could be quickly and efficiently prepared for future LNG projects. 

On the back of a comprehensive campaign of seismic surveys, prospecting and appraisal drilling, we expended the deposits area, and the PRMS proved and probable Jurassic reserves at the South-Tambeyskoye field increased by 186 mmboe (including 2022’s production) to 607 mmboe. By exploring Jurassic deposits and bringing Jurassic wells onstream, the South-Tambeyskoye field’s resource base and production plateau could be further extended. Pilot production of these Jurassic deposits is underway. As part of our efforts to determine the production prospects of these Jurassic deposits, five production wells were drilled, with tests demonstrating producibility at four of the wells. With an initial yield between 369 and 1,166 mcmpd, these wells also proved to be commercially viable.

The Utrenneye field’s SEC proved reserves grew by 357 mmboe to 590 bcm of natural gas and 23 mmt of condensate, while its PRMS proved and probable reserves estimates currently stand at 1,457 bcm of gas and 89 mmt of condensate.

A large-scale exploration campaign is underway at the Arctic LNG 1 fields. In 2022, all the preparations to develop the Geofizicheskoye field’s Cretaceous deposits were completed, and the necessary field development plan was produced. Further reserve maturation efforts were made at the Gydanskoye field, the Viktor Girya gas condensate field and the Soletsko-Khanaveyskoye field. Six prospecting and exploration wells underwent testing to validate the productivity of the Cretaceous deposits. The Gydanskoye field’s Achimov deposits were demonstrated to be commercially viable, with yields up to 230 mcmpd. The Company drilled an exploration well with horizontal completion targeting the Achimov deposits. Well tests are scheduled to be completed in 2023. 3D seismic surveys at the Gydansky and the North-Gydansky license areas covered 2,600 square km. Arctic LNG 1’s SEC proved reserves now total 2,237 mmboe, while its PRMS proved and probable reserves stand at 4,236 mmboe.

The Cretaceous reserves were matured at the Verkhnetiuteyskoye and West-Seyakhinskoye fields. This helped demonstrate the productivity of the Aptian-Albian and Neocomian deposits and acquire data on fluid composition. Development plans for the fields were produced. A prospecting well was drilled and tested at the Verkhnetiuteyskoye field, demonstrating its Jurassic deposits are highly productive. During the test, yields of up to 1,156 mcmpd were achieved, with a condensate content of up to 300 g/cm. The Verkhnetiuteyskoye field’s SEC proved reserves currently total 449 mmboe, while its PRMS proved and probable reserves stand at 525 mmboe. As part of resource base maturation efforts on the Yamal Peninsula, a high-density 3D seismic survey covering 1,255 square km was completed at the Arkticheskoye and Neitinskoye fields. Preparation is now ongoing for exploration drilling.

In order to maintain pipeline gas production levels and the volumes sent to the Purovsky Plant, we continued geological exploration at the Nadym-Pur-Taz region’s fields and license areas.

Efforts are underway to further explore and launch production from the Urengoyskoye field’s Achimov reservoirs. Exploration showed the Urengoyskoye field’s SEC proved Achimov reserves grew by 265 mmboe (including 2022’s production) to 3,920 mmboe. 

With reserves maturation now complete at the North-Chaselskoye field, its PRMS proved and probable reserves reached 546 mmboe, and a field development plan was prepared. Reserves at the Nyakhartinskoye field were also matured, pushing its PRMS proved and probable reserves to 306 mmboe.