Russia's Novatek is set for exploration work on the Syadorsky onshore block in the northern part of the Yamal Peninsula, over three years after obtaining the exploration and development licence.
According to a tender notice posted by Novatek’s regional subsidiary Yurkharovneftegaz, the company is seeking potential contractors to gather about 390 square kilometres of 3D seismic data on the block during this upcoming winter season.
In September 2016, Novatek paid 404 million roubles ($6.3 million) to authorities after winning an auction for the Syadorsky block, after a lack of interest from other bidders.
The block occupies over 2100 square kilometres and lies to the north-west of the port of Sabetta where Novatek and its international partners operate a three-train liquefied natural gas export plant, Yamal LNG.
The Syadorsky block had seen some prior exploration before the auction, with recoverable gas reserves of identified structures estimated at about 25 billion cubic metres.
However, progress of exploration efforts on the block has been slow as Novatek concentrated confirming gas reserves on other blocks on neighbouring Gydan Peninsula. These blocks are set to provide gas to Novatek’s two other LNG projects - Arctic LNG 2 and Arctic LNG 1 - expected to come online in the period between 2023 and 2030.
Meantime, under the terms of the licence, Novatek has five years to arrange the collection of seismic data on the Syadorsky block and the drilling of two exploration wells.
Yurkharovneftegaz said in a notice that potential contractors may submit applications for the seismic job by mid-day of 11 October, with results of the tender due to be announced not later than on 6 December.
Mobilisation of equipment, temporary living facilities and personnel to the identified work area on the block should be completed by 20 December, according to the notice.
