Novatek buys two assets from Repsol JV

Russian independent gas producer Novatek announced Wednesday the purchase of two assets from AR Oil & Gas, a joint venture between Spain’s Repsol and Russia’s Neftegazholding, Kallanish Energy learns.

The undisclosed acquisition will contribute to the company’s total production and increase its resource base in the “core area” of Novatek’s operations, said CEO Leonid Mikhelson.

“We continue to work actively to increase production volumes in the area of the Unified Gas Supply System, which is one of NOVATEK’s strategic priorities,” Mikhelson said.

AO South-Khadyryakhinskoye holds the exploration and production license for the South-Khadyryakhinskiy area located near the North-Khancheyskoye field, which is developed by a Novatek subsidiary. The asset contains an estimated 228 million barrels of oil-equivalent (MMBOE).

The second purchased asset, AO Eurotek, holds the E&P license for the Syskonsynyinskiy area, located in the Khanty-Mansiysk Autonomous Region. It’s estimated to hold some 48 MMBOE of resource and produced 799 million cubic meters (MMcm) of natural gas and 6.6 thousand tons of gas condensate last year.

Novatek has recently made news with a number of announcements, including the signing of cooperation agreements with Asian and European partners, as well as the commissioning of its operated YAMAL LNG project – the second liquefied natural gas (LNG) facility to operate in Russia. (See related stories)