Russian LNG developer and operator, Novatek has obtained the right to explore a new area on the Gydan peninsula in the Arctic.
Novatek-Yurkharovneftegas, a unit of the Yamal LNG project operator, won the bid for a geological survey, exploration and production license for the Payutskiy subsoil area.
The Payutskiy license area has estimated hydrocarbon resources of 354 million barrels of oil equivalent and contains the Nanadyanskoye gas field, according to a Novatek statement.
The license term is for 27 years and Vovatek made a one-time payment for the subsoil use of 66 million rubles ($1.16m), the company said.
The Payutskiy license area is located in the Krasnoyarsk Territory in close proximity to Novatek’s licenses on Gydan peninsula, near the West-Solpatinskiy, North-Tanamskiy, Nyavuyahskiy and Tanamskiy license areas.
The company already owns a significant resource base on the Gydan peninsula where it is developing its second LNG export project including the Utrenneye, Geofizicheskoye, Gydanskoye, Shtormovoye and Ladertoyskoye fields.
This new license allows the company to “expand its hydrocarbon resource base on the Gydan peninsula, and to consider developing significant long-term projects to increase the company’s production,” Novatek said.