Russia's largest gas independent Novatek has won an exploration and development licence for the Bukharinsky block on the Gydan Peninsula following an auction held at the end of last week.

The company said its wholly owned subsidiary Arctic LNG 1 has committed to pay Russian authorities 2.35 billion rubles ($37 million) for the licence, which will be valid for 27 years.

The initial price of the licence was set at 2.13 billion rubles, but the auction had been tailored to permit just Novatek and its subsidiaries to participate in the bidding, and cut off other potential participants such as gas monopoly Gazprom or oil producer Rosneft.