Novatek doubles Jurassic gas production at South Tambei field to 2 bcm in 2024, sufficient LNG plant reserves confirmed
MURMANSK. March 27 (Interfax) - Novatek produced over 2 billion cubic meters of gas from Jurassic deposits at the South Tambei field (license holder: Yamal LNG) in 2024, compared to 1 bcm extracted in 2023, Novatek Deputy Management Board Chairman and Director for Geology Vladimir Kudrin said during the International Arctic Forum.
Even more ambitious targets are set for 2025, he said.
Developing Jurassic deposits at depths of 3,500 meters requires 5-10 times more wells than for Cenomanian gas, which has been the foundation of Russia's gas industry, he said. The production cost per unit from Jurassic deposits is 10 times higher than from Cenomanian layers.
"Despite this, Novatek initiated exploration in 2021-2022, achieving commercial production of 1 bcm from Jurassic deposits in 2023, over 2 bcm in 2024 and [has] even more ambitious goals for 2025," Kudrin said. South Tambei's Jurassic production marks Yamal's first commercial Jurassic development and sets a Russian productivity record, he said.
He expressed gratitude to the government for providing tax incentives to develop Jurassic deposits for Yamal LNG. "More Jurassic reserves will be brought into production," he said.
When asked by journalists whether development would remain profitable after the MET (Mineral Extraction Tax) exemption expires in 2028, he declined to confirm this, but said it would "certainly become more efficient."
Exploration efforts have expanded Jurassic resources at the South Tambei field to nearly 1 trillion cubic meters, matching initial geological reserves (primarily from Cenomanian gas), he said.
Gas reserves are thus sufficient to supply the LNG plant, he said. "The original business plan was based on Cretaceous reserves [Cenomanian], and we've multiplied this resource base, almost doubling it through Jurassic deposits," he said.
Yamal LNG, whose participants include Novatek, TotalEnergies and China's CNPC and SRF, produced 32.8 bcm of gas in 2024. The South Tambei field serves as the resource base for the LNG plant with an annual capacity of approximately 20 million tonnes.
