Russia Plans March Bidding for Arctic Block
Russia's state subsoil licensing agency Rosnedra plans to hold an auction in March for rights to the Severo-Gydansky block on the Arctic Gydan peninsula, it said on February 2, with LNG exporter Novatek looking most likely to obtain the licence.
The 6,550-km2 block straddles the west shore of Gydan, partly extending into the Gydan bay of the Kara sea. The block does not contain any discovered deposits, and its resource estimates are only inferred and over a decade old. But it is thought to be mainly gas-prone.
Interested parties will have until March 5 to pay a deposit to participate in the auction, which will take place on March 24. The starting price for bids is rubles 704.9mn ($9.3mn).
Novatek requested several years ago that an auction be held for Severo-Gydansky. The company is looking for more Arctic gas to underpin its LNG growth plans, as it works towards its target of 70mn metric tons/year of LNG production by 2030. The nearest known fields to Severo-Gydansky are Gydanskoye, Shtormovoye, Ladertoyskoye and Utrenneye, all of which are controlled by Novatek.