NOVATEK Plans to Triple its Gas Reserves

27.05.2009 — News

THE YAMALO-NENETS AUTONOMOUS OKRUG.

OAO NOVATEK, the largest Russian independent gas supplier, is buying a prospecting and development license for the South-Tambey gas field on Yamal Peninsula. This will cost the company 650 million dollars.

On 26 May 2009 OAO NOVATEK's Board of Directors unanimously backed the acquisition of 51% of shares of OAO Yamal SPG, which holds the license for geological prospecting and hydrocarbon extraction at the gas field. Proven reserves at the South-Tambey gas field amount to 1 trillion 256 billion cubic meters of gas and 40-60 million tons of gas condensate. Field development will start in 15 years.

According to the company's representatives, by the end of 2008 OAO NOVATEK's reserves-to-production ratio equalled 23 years: 690 billion cubic meters of proven gas reserves and 55 million tones of liquid hydrocarbons.