Novatek wins auction for Soletsko-Khanaveyskoye gas field

Novatek’s wholly-owned subsidiary has won an auction for a geological survey, exploration and production license for the subsoil area including the Soletsko-Khanaveyskoye gas field.

Novatek said on Friday that the auction was won by Arctic LNG 1. The license is located on the Gydan peninsula in Yamal-Nenets Autonomous Region.

The license area has estimated hydrocarbon resources of 2,183 billion cubic meters of gas and 212 million tons of liquids, or 16 billion barrels of oil equivalent according to the Russian resource classification system.

The term of the license is 27 years, and the auction resulted in a one-time payment for the subsoil use in the amount of RR 2,586 million ($39 million).

The new license area borders Novatek’s Trekhbugorniy and Gydanskiy license areas and allows to create the resource base for the next LNG project similar to Arctic LNG 2, with liquefaction trains to be located at the Utrenniy terminal.