Page 12 - FSUOGM Week 37 2021

FSUOGM PROJECTS & COMPANIES FSUOGM

Novatek snaps up two

more Arctic fields

RUSSIA RUSSIA’S largest LNG exporter Novatek has allowed to file bids.
paid RUB13.2bn ($180mn) at a state auction for The two fields are both in the vicinity of the
Novatek is expanding rights to two gas fields on the Yamal Peninsula, Obsk LNG project, which was expected to pro-
its Arctic base further. the company announced on September 8. duce around 5mn tonnes per year (tpy) of LNG.
The Arkticheskoye and Neitinskoye fields But Novatek delayed taking a final investment
contain a combined 2.9bn barrels of oil decision (FID) on the plan last year, and CFO
equivalent (boe) under Russian classification Mark Gvetvay said earlier this year that the pro-
standards, Novatek said. This includes 413bn ject might be reconfigured to produce low-car-
cubic metres of gas and 28mn tonnes of liquid bon ammonia, hydrogen and methanol instead.
hydrocarbons. Novatek is eager to accumulate as many
Novatek’s acquisition of the fields was seen resources as it can in the Russian Arctic, to
as a given. Company CEO Leonid Mikhel- underpin the series of new LNG projects it has
son requested in a letter to Russian President in the pipeline. The company has set its sights on
Vladimir Putin that licences for the fields be put producing 70mn tpy of LNG in the region by the
up for sale in April. And the auction terms that end of the decade.
were set effectively prohibited any companies Novatek secured rights to the North-Gy-
from taking part in the auction. Only companies dansky block, also on the Gydan Peninsula, in
that operate liquefaction facilities in the Yama- March. That area is estimated to contain some
lo-Nenets region, where the only completed 270 bcm of gas and Novatek paid RUB775mn
plant is Novatek’s Yamal LNG facility, were ($10.2mn) for the licence. ™

Rosneft prepares for Yakutia

exploration campaign

RUSSIA ROSNEFT is preparing for an extended explo- (IOC) and Bharat Petroleum as shareholders,
ration campaign in Russia’s Far Eastern Yaku- discovered 75bn cubic metres of gas and 1.4mn
The campaign follows tia region, after making two discoveries in the tonnes of condensate in January, naming it
two discoveries in the remote area earlier this year. Ivan Kulbertinov. The joint venture made its
remote region earlier The state oil company plans to drill eight second find in the area in July, naming it Ked-
this year. exploration wells on seven blocks in Yakutia erginskoye. That field was assessed to be 40
between 2022 and 2024, according to ten- bcm of gas and 2mn tonnes of condensate in
der disclosure notices by its regional unit size.
Taas-Yuryakhneftegazdobycha (TYNGD). TYNGD is already developing Yakutia’s larg-
Those targeted blocks are Lower Dzherbinsky, est oilfield, the Srednebotuobinskoye deposit,
Kubalakhsky, Lower Chonsky, Middle Biryuk- which holds 1.25bn barrel of oil and condensate
sky, Ygyattinsky, Nyurbinsky and North Olguy- and 190 bcm of gas. Rosneft reported that the
dakhsky. They are all situated between 150 km subsidiary flowed 97,000 barrels per day (bpd)
and 350 km from the town of Mirny. of liquids last year.
Only Ygyattinsky, Nyurbinsky and North While Yakutia is remote, its oilfields are
Olguydakhsky are accessible all year round, and serviced by the Eastern Siberia–Pacific Ocean
four are only accessible from Mirny via tem- (ESPO) pipeline system, which pumps oil from
porary winter roads that become swampland the area to ports on Russia’s Pacific coast as well
in spring. Contractors will therefore have to as into China. Developing the region’s gas is more
arrange the delivery of rigs and other equipment of a challenge. There is limited local demand, and
in advance. Gazprom has access to the only export pipeline
TYNGD, which also counts BP and Indian in the region, Power of Siberia, which delivers
firms Oil India Ltd (OIL), Indian Oil Corp. gas to China. ™

P12 www. NEWSBASE .com Week 37 15•September•2021