NOVATEK to deal with industrial oil extraction in 2016

In 2015 NOVATEK is going to put into operation its first oil deposit of Yarudeiskoe (Yamalo-Nenets autonomous district) with the reserves of 47 million tons, is said in the presentation for the investors. From 2016 it is planned to extract 3.5 million tons per year and maintain this extraction for at least within 4 years. Sberbank CIB assesses, in 2014 NOVATEK will invest about $720 million (40% of its capital investments) into the construction of surface facilities at Yarudeiskoe.

The license for Yarudeiskoe belongs to Yargeo LLC (NOVATEK – 51%, Nefte Petroleum (Cyprus) – 49%). Sberbank CIB reports, from 2016 NOVATEK will obtain oil from Severenergiya (the JV with Gazprom Neft, Eni and Enel) as well: the extraction at Samburg, Yaro-Yakhinskoe, North Chaselskoe deposits (Yamalo-Nenets autonomous district) will start (totally about 6 million tons per year). This is confirmed by the source close to Gazprom Neft. The share of NOVATEK is Severenergiya makes up 25.5%, thus it can expect 1.5 million tons. The representative of NOVATEK was not available for comments. The source close to the company confirmed that NOVATEK is going to run oil business and increment the extraction beyond the 65th parallel.