NOVATEK obtains North-Gydanskiy license area

AK&M 26 March 2021 18:57

Arctic LNG 1, a wholly owned subsidiary of JSC NOVATEK, has won the auction for geological survey, exploration and production license for the North-Gydanskiy subsoil license area, NOVATEK informed.

The license area is located in Yamal-Nenets autonomous area on the Gydan Peninsula and partly in the shallow waters of Gydan Bay of the Kara Sea.

The license area has estimated hydrocarbon resources of 9.8 billion barrels of oil equivalent according to the Russian resource classification system. The license term is 30 years and the auction resulted in one-time payment for the subsoil use of RUB 775.4 million.

The new license area borders NOVATEK's existing assets on the Gydan Peninsula and expands the Company's resource base for implementing new LNG projects, the statement notes.

JSC NOVATEK (tax number: 6316031581) is the second largest natural gas producer in the Russian Federation after Gazprom. IFRS profit of JSC NOVATEK attributable to the company's shareholders amounted to RUB 67.8 billion (RUB 22.58 per share) versus RUB 865.5 billion in 2019. In 2020, the company's total revenues and normalized EBITDA, including its share in the EBITDA of joint ventures, amounted to RUB 711.8 billion and RUB 392.0 billion, respectively, representing decreases of 17.5% and 15.0%, as compared to 2019.