Russian government announces auction for development of Gydanskoye gas field

The Russian government has announced an auction for the development of the Gydanskoye gas field in the Yamalo-Nenets Autonomous District, according to a resolution published on the website of the Cabinet of Ministers.

“A federal subsoil resource section located in the Yamalo-Nenets Autonomous District, which includes the Gydanskoye field, has been listed as an auction site for the geological study of the subsoil resources as well as the exploration and production of raw hydrocarbons based on a joint license. The site area is 3,705.3 square metres”, the resolution says.

According to the documentation, the auction should be held in 2017 and the one-time payment for the section has been set at RUB 2.056 billion, TASS news agency reports.

The field has the following reserves and resources: 58.365 billion cubic metres of gas under C1 classification, 57.716 billion cubic metres of gas under C2 classification, 361.472 billion cubic meters of gas under C3 category, and 31.896 million tonnes of gas condensate (recoverable resources under C3 classification).

Novatek CEO and Board of Directors member Leonid Mikhelson said at the ‘Arctic: Territory of Dialogue’ forum in March that the Yamal and Gydan Peninsula has resources to produce more than 70 million tonnes of liquefied natural gas (LNG) per year and noted that using the potential of the Yamal and Gydan resource base would make it possible to set up a LNG cluster in the region that would make up more than 15% of global LNG production.