Novatek May Tap Additional Gas Volumes from Deep Horizons of Nadym-Pur-Taz Region Within 3–5 Years if Tax Burden Is Reduced
Novatek could begin developing additional reserves from deep horizons of the Nadym-Pur-Taz region (Yamalo-Nenets Autonomous Okrug) within three to five years. This was stated by Ekaterina Galyan, Director of the Subsoil Use and Resource Base Management Department at the company, during the “Hard-to-Recover Reserves – Present and Future” conference.
At the same time, she emphasized the urgent need to stimulate production from deep horizons in the Nadym-Pur-Taz region.
“It is very important today to pay attention to the rational development of fields, since the depletion of upper formations creates incompatible conditions for extracting gas from the underlying hard-to-recover horizons. Today there is still an opportunity, while a geological window for the development of hard-to-recover reserves exists, and this deserves fundamental attention. But under the current tax regime, it is, of course, extremely, extremely difficult to implement,” Galyan said.
As part of tax revision and refinement, Novatek proposes the introduction of mechanisms focused on the development of untapped reserves within areas of existing infrastructure, and on maximizing production at already developed fields.
“From the moment a decision on taxation is made, these additional volumes can begin to be developed—at least for us—within three to five years,” Galyan assured.
