OAO NOVATEK announced the start of commercial production at the major Yarudeyskoye oil field, which is expected to rapidly reach its planned daily production level equivalent to approximately 3.5 million tons of crude oil on an annualized basis.
Thirty-six (36) production wells have been drilled and the field's infrastructure includes a central oil treatment facility, oil and gas gathering systems, a pumping station, and crude oil and gas pipelines linking the field to the trunk pipeline systems.
Chairman of the Management Board of NOVATEK, Leonid V. Mikhelson stated: 'The launch of the Yarudeyskoye field is another important milestone in the Company's history as it represents successful completion of our first major crude oil development project. We have successfully ramped up our liquids production over the past three years, and the Yarudeyskoye field allows us to sustain double-digit growth rates next year, as well as to contribute substantially to our free cash flow generation. The field's high quality reserve base and the application of state of the art drilling and completion technologies enabled us to ensure record high flow rates as well as very low per unit development and lifting costs'.