NOVATEK launches the second stage of the Yurkharovskoye field phase two
development
OAO Novatek
NOVATEK LAUNCHES THE SECOND STAGE OF
THE YURKHAROVSKOYE
FIELD’S PHASE TWO DEVELOPMENT
Moscow, 19 October 2009. OAO NOVATEK (“NOVATEK” or the
“Company”) announced today the initial launch of the second stage of
Phase Two development at its wholly-owned Yurkharovskoye field,
providing the Company with the potential to increase annual productive
capacity at the field by seven billion cubic meters (bcm) of natural gas
and approximately 600 thousand tons of unstable gas condensate.
The Company completed the first stage of Phase Two development in
September 2008 and is able to transport up to 34 bcm of natural gas from
the field per annum. NOVATEK has continued to invest capital to expand
the field’s productive capacity, and as part of the second stage
development, the Company launched two additional processing trains for
separating natural gas, enabling the field to reach annual natural gas
and gas condensate production volumes of 23 bcm and two million tons,
respectively. With the launch of the second stage, NOVATEK has the
productive capacity to produce up to 44 bcm of natural gas per annum.
According to NOVATEK’s CEO, Leonid Mikhelson, “Our continued investment
in the Yurkharovskoye field allows us the flexibility to increase
hydrocarbon production from gas condensate layers in order to optimize
the mix of natural gas and gas condensate production from our fields,
thus maximizing our revenue streams from stable gas condensate and
liquefied petroleum gas sales”
Note:
The Yurkharovskoye field is located within the Polar Circle southeast
of the Tazovsky peninsula. The field is licensed to our
wholly-owned subsidiary OOO NOVATEK-YURKHAROVNEFTEGAS, and has been
producing natural gas and gas condensate since 2003. The field’s
proven (SEC) reserves amount to 343 bcm of natural gas and 17 million
tons of liquid hydrocarbons. In 2008, the field produced 11.71 bcm of
natural gas and 895 thousand tons of gas condensate. The Yurkharovskoye
field is the largest of NOVATEK’s core fields in terms of reserves and
the cornerstone of mid-term strategy of production growing.
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For further information, please visit www.novatek.ru
or contact:
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OAO NOVATEK is Russia’s largest independent gas producer and the
second-largest natural gas producer in Russia. Founded in 1994, the
Company is engaged in the exploration, production, processing and
marketing of natural gas and liquid hydrocarbons. The Company’s upstream
activities are concentrated in the prolific Yamal-Nenets Region, which
is the world's largest natural gas producing area and accounts for over
90% of Russia's natural gas production and 20% of the world’s gas
production. NOVATEK is an open joint stock company established under the
laws of the Russian Federation. The Company’s shares are listed on the
Russian Trading System (RTS) and the London Stock Exchange (LSE) under
the ticker symbol ‘NVTK’ and on the NASDAQ PORTAL System as Rule 144A
GDR under the ticker symbol “NVATY”.
