Russia’s Novatek, Gazprom Neft JV Launches Third Field, Increases by 1/3 Production Capacity

NOVATEK announced that Arcticgas - its joint venture with GazpromNeft - has launched its third field into commercial production. The Yaro-Yakhinskoye field is expected to produce 7.7 billion cubic meters of natural gas per annum from 2016.

The field in the Yamal-Nenets Autonomous Region will increase by over 30% the production capacity of the joint venture.  

‘Thirty-seven (37) gas condensate wells have been drilled and the field’s infrastructure also includes a gas gathering network, a gas treatment unit, and a gas condensate de-ethanization unit’ reads a note released on Wednesday.  

According to NOVATEK, Arctigas produces over 25% of total Russia’s gas condensate and 4% of natural gas production.

“Arcticgas is an important driver for NOVATEK’s production growth in 2015, and the three fields of this joint venture contribute significantly to fulfilling our vertically-integrated gas condensate value chain” Chairman of the Management Board of NOVATEK, Leonid V. Mikhelson, commented. 

Arcticgas holds the development and production licenses for the Samburgskiy, Yevo-Yakhinskiy, Yaro-Yakhinskiy and North-Chaselskiy license areas. As at 31 December 2014 the proved reserves of Arcticgas according to PRMS standards were estimated at 695 bcm of natural gas and 127 million tons of liquids. 

According to a story published by Bloomberg on Tuesday, Novatek plans to accelerate the sale of a stake in Yamal LNG, explaining that the reason has to do with U.S. sanctions, which would limit the project’s financial options.