NOVATEK announced that Yargeo, the company’s joint venture, won the auction for geological survey,

exploration and production license for the North-Yarudeyskiy subsoil area.

For the 1st time, NOVATEK won an auction held on the electronic platform ETP GPB.

The license area is located within the Yamal-Nenets Autonomous Area near Yarudeyskoye field, which is the largest crude oil asset in the company’s portfolio, and is characterized by unique geology.

The field’s average flow rate is one of the highest production output amongst fields producing in Western Siberia.

The North-Yarudeyskiy license area holds an estimated hydrocarbon resource potential of 93.5 million barrels of oil equivalent according to the Russian resource classification system.

The license term is 27 years.

The company, though not state-owned like competitor and Russia’s largest natural gas producer Gazprom, faces significant headwinds as the result of EU sanctions following Russia’s invasion of Ukraine.

While there are no direct sanctions against the company’s exports of LNG, NOVATEK ’s European partners have announced scaling back or fully exiting from the joint Arctic projects.