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Novatek in drilling tender for Obsky LNG in Russia

Novatek has added a third exploration well to its massive drilling programme under the Obsky liquefied natural gas project, which is due to run between next year and 2023.

According to a tender disclosure notice by Novatek-owned operator Obsky SPG, the company intends to spud exploration well 500R on the Upper Tiuteyskoye field next May.

Upper Tiuteyskoye, together with the neighbouring West Seyakhinskoye field, will provide gas to the planned LNG plant, which is set to be built next to the existing liquefaction facility in the port of Sabetta on Yamal Peninsula.

OPINION: Russia's LNG eggs in Novatek's basket

Obsky LNG had earlier disclosed a plan to spud two exploration wells on each of the deposits, with local driller Novourengoyskaya Drilling selected for the job.

Current recoverable reserves of the two deposits are estimated at 200 billion cubic metres of gas.

Besides exploration wells, the operator expects to drill 25 development wells from three clusters on the Upper Tiuteyskoye and 59 development probes from five clusters on the West Seyakhinskoye, between next year and 2025, according to its earlier tender disclosure notice.

Obsky LNG has also invited Russian and international drillers to file applications for development drilling jobs at the two deposits.

On offer are jobs to spud 25 such wells on the Upper Tiuteyskoye and 28 wells on the West Seyakhinskoye fields, according to the operator.

Obsky LNG said that applications for all drilling jobs should be submitted not later than on 17 October.

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Novatek, Russia's largest independent gas producer, revealed a plan to construct a three-train plant with output of about 5 million tonnes per annum of LNG earlier this year, saying that it will use solely Russian equipment and supplies compared with its two other LNG developments in the area, Yamal LNG and Arctic LNG 2, both of which rely mainly on imported components and modules.

Each Obsky LNG train will use Novatek’s own liquefaction technology, known as Arctic Cascade. The company claims that, despite the low output of just over 1.5 million tpa for each train, the technology is cost effective because of its simplicity and reliance on predominantly cold Arctic environment to chill processing gas.

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