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    Gazprom Beats Rivals in Siberian Licence Contest


The state gas giant paid almost 32 times more than the initial asking price for the gas licence.

by: Joseph Murphy

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Natural Gas & LNG News, Europe, Premium, Corporate, Exploration & Production, Political, Licensing rounds, News By Country, Russia

Gazprom Beats Rivals in Siberian Licence Contest

Russia’s Gazprom has outbid rivals Novatek and Rosneft for development rights to a gas block in Western Siberia’s Yamalo-Nenets region, state subsoil agency Rosnedra said on January 20.

The 2,500-km2 Sopochny block holds 261bn m3 of gas and 9.8mn mt of condensate, according to Russia’s resource classification system.

Gazprom secured a 25-year exploration and production licence for the area after offering to pay rubles 12.14bn ($197mn) in a state auction. Competition with Novatek and Rosneft was fierce, driving up the price of the licence from an initial rubles 0.38bn.

Rosneft also won a separate auction this week to develop two other Yamalo-Nenets blocks, Mitikyakhsky-1 and West-Kharampursky, containing 19.6mn mt (144mn barrels) of oil.