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NOVATEK Obtains the East-Ladertoyskiy License Area
Moscow, 17 December 2019. PAO NOVATEK (“NOVATEK” and/or the “Company”) announced today that NOVATEK-Yurkharovneftegas, a wholly owned subsidiary, won the auction for geological survey, exploration and production license for the East-Ladertoyskiy subsoil area located on the Gydan Peninsula in the Yamal-Nenets Autonomous Region.
The license area has estimated hydrocarbon resources of 184 billion cubic meters of natural gas and 32 million tons of liquids, or 1.5 billion barrels of oil equivalent, according to the Russian resource classification system. The license term is 25 years and the auction resulted in one-time payment for the subsoil use of RR 81 million.
The new license area borders NOVATEK’s Ladertoyskiy, Nyavuyahskiy, West-Solpatinskiy and Central-Nadoyakhskiy subsoil areas on the Gydan Peninsula. The new license acquisition is in line with the Company’s strategy to expand its resource base on the Yamal and Gydan peninsulas.
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.