Novatek-Tarkosaleneftegas, a subsidiary of Russian natural gas producer Novatek, has achieved commercial production at the South-Khadyryakhinskoye gas field in the Yamal-Nenets Autonomous Region of Russia.

South-Khadyryakhinskoye gas field reserves and production

Located in the Purovsky district, the onshore gas field, under the Russian reserves classification, has reserves of around 28 billion cubic meters of natural gas, as of 31 December 2018.

Novatek estimates nearly one billion cubic meters per annum to be produced from the South-Khadyryakhinskoye gas field.

Novatek management board chairman Leonid Mikhelson said: “The South-Khadyryakhinskoye field is located in close proximity to the Company’s existing infrastructure, which allowed us to quickly commence initial gas production and optimize the field’s capital costs.

“The new gas production capacity will contribute immediately to incremental growth in our domestic natural gas production connected to the United Gas Supply System”.

Novatek acquired the South-Khadyryakhinskoye gas field alongside AO Eurotek in December 2017 from AR Oil&Gas, a joint venture of AO Neftegazholding and Repsol, for an undisclosed price.

The South-Khadyryakhinskiy licence area is located near the infrastructure of the North-Khancheyskoye field, which is also developed by a subsidiary of Novatek. On the other hand, AO Eurotek holds the hydrocarbon exploration and production license for the Syskonsynyinskiy license area in the Khanty-Mansiysk Autonomous Region.

Earlier this month, the Russian gas producer confirmed plans to develop the lower Achimov formation at the Urengoyskoye field. The decision came following the completion of a horizontal well number “U2802” in the field by Arcticgas, a joint venture between the company and Gazprom Neft.

The U2802 well achieved a daily flow rate in excess of one million cubic meters of natural gas and 500 tonnes of gas condensate, which confirmed the significance of developing the lower Achimov deposits.

In another development, Novatek completed the sale of its previously announced deals of offloading a 10% stake each in the Arctic LNG 2 project to China National Petroleum Corporation (CNPC) and Japan Arctic LNG.