NOVATEK subsidiaries intend to operate on Verkhnetiuteyskoye, Zapadno-Seyakhinskoye and Storm fields

Novatek subsidiaries – Arctic LNG-2 and Novatek-Yurkharovneftegaz applied for the participation in tender to develop Verkhnetiuteyskoye, Zapadno-Seyakhinskoye, and Storm fields in Yamalo-Nenets autonomous district. That was reported by the Minister of Natural Resources on 7 August 2017.

The applications for the right to develop and extract hydrocarbons on those fields were accepted till 4 August 2017. The auction was divided in 2 lots. Verkhnetiuteyskoye and Zapadno-Seyakhinskoye fields were sold in the auction as a single lot with an initial payment estimated at 5.8bn RUB. The initial payment of the Storm field will amount to 945.2m RUB.

The reserves of Zapadno-Seyakhinkoye and Verkhetiuteyskoye fields of C1+C2+C3 categories are estimated at 882,4 m3 of gas and 68m tonnes of gas condensate and oil. The reserves of Storm field of C1+C3 categories are estimated at 479.4bn m3 of gas and 49m tonnes of gas condensate. The auction is scheduled for 25 August 2017.

As in the case with the auction held on Gydan field, new auctions provided for the participation only of those companies, operating on the territories of Yamal and Gydan peninsulas as the companies involved in gas liquefaction. The only gas liquefaction plant on the peninsula is owned by Novatek.

Due to this fact, Arctic LNG-1 and one more Novatek subsidiary won the tender in early June 2017. Now these companies have the right to develop the subsoil site, which includes Gydan field in YNAO. The government of the RF has already issued a licence for Gydan field development. Arctic LNG-1 won the tender by offering the price of 2.262bn RUB (the initial payment was 2.05655bn RUB).

Novatek is now actively expanding its resource base for Yamal LNG project and Arctic LNG-2 plant. In 2016, Novatek obtained Nakhartinsky site, which is in the Kara sea. Gydan, Verkhnetiuteyskoye, Zapadno-Seyakhinskoye and Storm fields will bolster Novatek’s plans to become the largest LNG exporter in 10 years.


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