NOVATEK Obtains Gydanskiy Subsoil License at the Gydan Peninsula

The auction resulted in a one-time payment for the subsoil use in the amount of 2,262 million rubles.

The Company already owns significant resources on the Gydan peninsula including the Utrenneye, Geofizicheskoye and Ladertoyskoye fields, as well as the Trehbugorniy, Nyavuyahskiy, West-Solpatinskiy, Tanamskiy and North-Tanamskiy license areas.  The Gydanskiy license area is located in close proximity to Utrenneye field, the field that will serve as the resource base for Arctic LNG-2 project. This new license area expands the Company’s reserve base on the Gydan peninsula as well as allowing the Company to consider significant new long-term LNG projects. The license area’s resources according to the Russian classification are 4,740 mmboe of hydrocarbons.