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.
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