PAO NOVATEK announces that NOVATEK-Tarkosaleneftegas, a wholly owned subsidiary, commenced pilot production at the North-Russkoye field, with estimated annual production capacity of 5.7 billion cubic meters of natural gas and 700 thousand tons of gas condensate.

The North-Russkoye field is the first launch of the North-Russkiy block of fields, which also includes the Dorogovskoye, East-Tazovskoye and Kharbeyskoye fields scheduled for commercial launch during 2020 to 2021 with cumulative gas production capacity of more than 13 billion cubic meters per annum.

“The successful launch of the North-Russkoye field is consistent with the Company’s strategy to increase our domestic natural gas production in the area of the United Gas Supply System,” noted Leonid Mikhelson, NOVATEK’s Chairman of the Management Board. “The fields comprising the North-Russkiy block are located in close proximity to each other, allowing us to optimize capital costs on natural gas and condensate treatment facilities, as well as transport infrastructure.”

Background

The North-Russkoye field is located in the Tazovskiy district of the Yamal-Nenets Autonomous Region. NOVATEK-Tarkosaleneftegas holds the field’s license for exploration and production activities. As of 31 December 2018, the field’s reserves under the Russian reserves classification totaled about 104 billion cubic meters of natural gas and 6.5 million tons of liquids.

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