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    Russian Novatek Buys More Acreage

Summary

Located on the Gydan peninsula, the acreage will supply feedstock to Russian Arctic LNG projects. It also contains condensate.

by: William Powell

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Russian Novatek Buys More Acreage

Russia's biggest private gas producer Novatek said November 8 it has bought the geological survey, exploration and production licence for the South-Leskinskiy subsoil licence area on the Gydan peninsula in the Krasnoyarsk Territory of western Siberia. The area has estimated resources of 3.5bn barrels of oil equivalent, according to the Russian resource classification system which does not take account of project economics. The licence term is 27 years and the auction resulted in one-time payment for the subsoil use in the amount of roubles 2.041bn ($31mn), it said.

The area is close to Novatek's existing licences on the Gydan peninsula, which will supply the feedstock for the projected Arctic-2 and other LNG production and export projects. The new licence is consistent with Novatek's strategy to expand its hydrocarbon resource base on the Yamal and Gydan peninsulas to increase natural gas and liquid hydrocarbons production, it said.