Beregovoy license area and Pyreinoye field

The Beregovoy license area and the Pyreinoye field, which are being developed by our joint venture, OAO Sibneftegas (NOVATEK’s share – 51%), accounted for 9% of NOVATEK’s marketable production of hydrocarbons in 2012.

 

The Beregovoy license area, valid until 2023, is the largest asset of Sibneftegas in terms of reserves. Total proved gross reserves of the Beregovoy area as at 31 December 2012 under the SEC reserves methodology are estimated at 148.6 bcm of natural gas, of which our share is 75.8 bcm. Commercial production of natural gas at the field began in 2007 and, in 2012 the field produced 9.5 bcm of natural gas (NOVATEK’s share - 4.9 bcm). Interpretation of 3D seismic data was completed in 2012, the geological field model was adjusted, and reserves were re-estimated in order to optimize the field development plan.

 

The Pyreinoye gas condensate field, valid until 2021, has proved gross gas reserves of 19.3 bcm, as estimated under the SEC reserves methodology as at 31 December 2012, with our proportional share in the proved reserves apprised at 9.8 bcm of natural gas. Commercial gas production began at the field in 2009, and in 2012, the field produced 0.95 bcm of natural gas (NOVATEK’s share - 0.48 bcm). Interpretation of 3D seismic data was completed in 2012, the geological field model was adjusted, and reserves were re-estimated in order to optimize the field development plan. One gas producing well was also drilled.