The story
Founded by Leonid Mikhelson on Aug 16, 1994.1
In 2006, the company produced roughly thirty billion cubic metres (1.1 trillion cubic feet) of natural gas. By 2010, production had grown to 37.2×10^9 m3 (1.31×10^12 cu ft), and in 2011 to 52.9×10^9 m3 (1.87×10^12 cu ft) In 2010, Novatek supplied 13% of the domestic market and accounted for 32% of non-Gazprom production. Total reserves amount to 9.4×10^9 BOE (5.8×1010 GJ) using the Securities and Exchange Commission methodology. Regarding dry sales gas, Novatek operates only in the domestic market, which is characterized by artificially low prices. Novatek's earnings before interest, taxes, depreciation, and amortization and net profit margin in 2011 were 49% and 32%, respectively.
The major gas field owned by Novatek is the Yurkharovskoye field. On 27 May 2009, Novatek bought a 51% stake in Yamal LNG from Volga Resources, which controls the giant South-Tambeyskoye field. On 2 July 2010, Novatek purchased Tambeyneftegas, which holds the licence to the Arctic Malo-Yamalskoye field, located on the Yamal Peninsula and holding 161×10^9 m3 (5.7×10^12 cu ft) of natural gas and 14.4 million tonnes of gas condensate.
In June 2010 Novatek and Gazprom announced plans to build a liquefied natural gas plant in Yamalo-Nenets Autonomous Okrug. Total S.A. will also be involved as a 20% shareholder.
It was announced in July 2010 that, together with Total S.A., Novatek was developing the Termokarstovoye field in Yamal.
In December 2010, Novatek bought a 51% stake in Sibneftegaz from Gazprombank (Itera owns 49% of the shares). Sibneftegaz holds licences for exploration and production in the Yamal-Nenets region, including for the Beregovoye field, Pyreinoye field, Zapadno-Zapolyarnoye field, and the Khadyryakhinskiy licence area. Sibneftegaz owns rights to develop oil and gas condensate fields with a total resource of 395.53 bcm of natural gas and 8.44 million tonnes of gas condensate.
In 2011, Novatek was awarded licences to develop the Geofizichenskoye field, Salmanovskoye (Utrenneye) field, Severo-Obskoye field, and Vostochno-Tambeiskoye field.
In addition, Novatek acquired these companies:
SNP Nova – pipeline construction
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Purneftegasgeologiya – natural gas
Tarkosaleneftegas – natural gas
Khancheyneftegas – natural gas
Yurkharovneftegas – natural gas
It was announced in 2013 that Novatek would develop the Sabetta port on the Yamal Peninsula, in a joint project with the Russian government to allow LNG exports by sea.
The final investment decision on Novatek's Arctic LNG 2 project on the Gyda Peninsula was made in March 2019.
In September 2021, Yamal SPG Resurs of Novatek acquired the Arkticheskoye and Neytinskoye fields for $10.88 billion and $2.28 billion, respectively, for further geological study of subsurface resources, exploitation, and production. A notable aspect of the auction sale was the participation of Novatek structures only.
Novatek has been ranked as being among the 13th-best of 92 oil, gas, and mining companies on indigenous rights in the Arctic. In 2021, Novatek was ranked no. 19 in the Arctic Environmental Responsibility Index (AERI) that covers 120 oil, gas, and mining companies involved in resource extraction north of the Arctic Circle. In 2022, the company's revenue amounted to 805 billion rubles.
After the 24 February 2022 Russian invasion of Ukraine, on 3 March, the London Stock Exchange declared it would suspend trading in GDR securities for Russian firms, and so Novatek was affected. Later on 7 February 2023, Novatek cancelled its (suspended) listing on the LSE.
Novatek exploitation of Arctic energy resources include the planned Arctic LNG 1, 2 and 3 liquefied natural gas plants which are being developed so that Novatek will become the main player in the Liquefied natural gas industry in Russia with plans to generate LNG capacity of 70 million tons per annum (MTPA) by 2030. The export of the Arctic LNG requires building Arc6 and Arc7 ice breaking LNG carriers.
Novatek was in the news in March 2024 when the Moscow Times disclosed that many European suppliers for its LNG projects in the Gulf of Ob had traded with it, seemingly in contravention of EU sanctions imposed in the wake of the 2022 Russian invasion of Ukraine. The total value of goods supplied exceeded 500 million euros, and the investigation identified goods from Italy, France, Germany, the Netherlands, and Spain.
In May 2024, Novatek launched the North Chaselskoye gas and condensate field in West Siberia, with an annual capacity of 3 billion cubic meters, aimed at supporting domestic needs and the upcoming Murmansk LNG project in northwestern Russia. This move, a response to EU and US sanctions, shifts the focus from Arctic operations to ice-free zones in the northwest, aligning with Gazprom's strategy to prioritize the domestic market amid geopolitical changes.
In 2025, the LNG carrier Aleksey Kosygin was launched, and entered service the same year it has a gross tonnage of 81,000 gross registered tons. The ship was built by the Zvezda Shipbuilding Complex, the tanker is intended for year-round LNG transportation via the Northern Sea Route as part of Novatek's Arctic LNG 2 project.
From Wikipedia’s article on Novatek, shared under CC BY-SA 4.0.4