Novatek and Rostrom in Arctic Partnership
Russian company Novatek has entered a co-operative agreement with Rosatom, the State Atomic Energy Corporation, to develop Arctic reserves.
Under the pact, the parties will join in investigating and investing in Arctic waters and northern ocean fields, as well as technology development. A major aim will be finding an ice-free export route for fields in the Arctic.
The agreement, signed in Moscow, formalizes joint intent to develop a mutually beneficial partnership, the two said in a statement.
Chairman of Novatek’s board, Leonid Mikhelson, said: “The company is active in the Arctic Region and has pioneered the transportation of hydrocarbons by tankers through the Arctic Ocean’s Northern Sea Route. We are planning to scale up operations and develop our hydrocarbon fields on the Yamal and Gydan peninsulas and in the Gulf of Ob. A mutually beneficial cooperation with Rosatom reinforces our confidence in implementing our long-term development plans and underscores our commitment to conducting all of our operation in a sustainable development manner consistent with industry best practices.”
The objectives of the new agreement include safe navigation in Arctic waters, and the White and Baltic seas, co-ordination of related investments, and creation of new technologies to improve processes in natural gas harvesting and making gas condensate.
"Novatek and Rosatom have a mutual interest and intent to develop cooperation in organizing continuous and environmentally safe icebreaker support to the vessels navigating through the Northern Sea Route, in particular, to and from the port of Sabetta when transporting construction cargoes and end products of the LNG plant on the Yamal peninsula," the statement said. "The Agreement envisages conclusion of a long-term services contract for icebreaker support through the Northern Sea Route for the period of at least 15 years."
Sergei Kirienko, Rosatom's general director, said development of the North Sea route was a major goal for his organisation. "We are building a new generation of nuclear-powered icebreakers, guaranteeing reliable operation of this major traffic artery in the long-term period. This is a mutually beneficial agreement – for Rosatom flot it is important to have a stable demand for its services and for such companies as Novatek, it is essential to be confident that its hydrocarbon production is transported the most effective way,” he said.
See also: Novatek, Total, Evaluate Yamal Project