Russia’s Novatek strikes gas on Gydan

Russian LNG producer Novatek said it had found a new natural gas field within the Bukharinskiy license area in the Gydan peninsula.

According to a statement by Novatek on Monday, its unit Arctic LNG 1 had completed testing of the first prospecting well within the Bukharinskiy license area adjacent to the company’s Trekhbugorniy license area.

“The work discovered a new gas condensate field, which was confirmed by the relevant opinion from the State Reserves Commission,” Novatek said.

Novatek said it had named the discovered field after Viktor Girya, a geologist and one of those who founded Novatek, making a significant contribution to the exploration and development of the company’s vast natural gas and liquid hydrocarbons reserves in Yamal and Gydan.

The LNG producer estimates the new field to hold recoverable reserves of 52 billion cubic meters of natural gas and 2 million tons of liquids under the Russian reserve reporting standards.

“With this discovery, the company will expand its resource base in the Gydan peninsula with the view to subsequently putting the field into efficient production under the development of its prospective projects,” Novatek said.

Novatek currently exports LNG via its Yamal LNG plant and the mid-scale facility in Vysotsk and is building the Arctic LNG 2 plant.

Last week, the company’s major partner TotalEnergies said it would take a $3.7 billion hit in its fourth-quarter results for the write-down of its stake in Novatek.

TotalEnegries holds a 19.4 percent interest in Novatek. It also holds a 10 percent stake in the Arctic LNG 2 development, as well as a 20 percent in the Yamal LNG project.

Besides the write-down of the stake, TotalEnergies has decided to withdraw the representatives of the company from the board of Novatek.

Novatek said in a separate statement on Monday that the company had received notices from representatives of TotalEnergies Arnaud Le Foll and Dominique Marion of their resignation from Novatek’s board of directors.

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