The Bukharinskiy license area has estimated hydrocarbon resources of 1,190 billion cubic meters of natural gas and 74 million tons of liquids, or 8.4 billion barrels of oil equivalent, according to the Russian resource classification system. The license term is 27 years and the auction resulted in one-time payment for the subsoil use of RR 2,346 million.
The Bukharinsky block occupies the lowest southern corner of the Gydan peninsula and is located below several other blocks that Novatek intends to use as a source of gas for Arctic LNG 2 and its third major LNG project, Arctic LNG 1.
The new license area borders NOVATEK’s Soletsko-Khanaveyskoye field and the Trekhbugorniy license area on the Gydan Peninsula, and allows the company to increase the resource base for the next LNG project similar to Arctic LNG 2, with liquefaction trains to be located at the Utrenniy terminal.
