Press Releases and Events
NOVATEK Obtains the Bukharinskiy License Area
Moscow, 27 December 2019. PAO NOVATEK (“NOVATEK” and/or the “Company”) announced today that Arctic LNG 1, a wholly owned subsidiary, won the auction for geological survey, exploration and production license for the Bukharinskiy subsoil license area located on the Gydan Peninsula and partly in the shallow waters of the Ob and Taz bays in the Yamal-Nenets Autonomous Region.
The Bukharinskiy license area has estimated hydrocarbon resources of 1,190 billion cubic meters of natural gas and 74 million tons of liquids, or 8.4 billion barrels of oil equivalent, according to the Russian resource classification system. The license term is 27 years and the auction resulted in one-time payment for the subsoil use of RR 2,346 million.
The new license area borders NOVATEK’s Soletsko-Khanaveyskoye field and the Trekhbugorniy license area on the Gydan Peninsula, and allows the Company to increase the resource base for the next LNG project similar to Arctic LNG 2, with liquefaction trains to be located at the Utrenniy terminal.
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.