Download - Kick off meeting 3 April, 2012
GASTECH, London October, 2012
Yamal LNG
Project overview
Gleb Luxemburg CEO, Yamal LNG
1
This presentation does not constitute or form part of, and should not be construed as, an offer to sell or issue or the solicitation of an
offer to buy or acquire securities of the Company or any of its subsidiaries in any jurisdiction or an inducement to enter into investment
activity in any jurisdiction. Neither this presentation nor any part thereof, nor the fact of its distribution, shall form the basis of, or be
relied on in connection with, any contract or commitment or investment decision whatsoever. The information contained in this
presentation has not been independently verified. The information in this presentation is subject to verification, completion and change
without notice and neither the Company is under any obligation to update or keep current the information contained herein.
Accordingly, no representation or warranty, express or implied, is made or given by or on behalf of the Company or any of its respective
members, directors, officers or employees nor any other person accepts any liability whatsoever (in negligence or otherwise) for any
loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection therewith.
This presentation and the information contained herein does not constitute and should not be construed as an offer to sell or the
solicitation of an offer to buy securities in the United States as defined in Regulation S under the US Securities Act of 1933 (the
"Securities Act"). Any securities of the Company may not be offered or sold in the United States absent registration or an exemption
from registration under the Securities Act. The Company has not registered and does not intend to register any portion of the Offering
in the United States or to conduct a public offering of securities in the United States.
This presentation does not constitute a public offering or an advertisement of securities in the Russian Federation and does not
constitute an offer or a proposal to make offers or to acquire any securities in the Russian Federation.
This presentation contains "forward-looking statements" which include all statements other than statements of historical fact. Such
forward-looking statements can often be identified by words such as "plans," "expects," "intends," "estimates," "will," "may," "continue,"
"should" and similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other important
factors beyond the Company’s control that could cause the actual results, performance or achievements of the Company to be
materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Such
forward-looking statements are based on numerous assumptions regarding the Company’s present and future business strategies and
the environment in which the Company will operate in the future. By their nature, forward-looking statements involve risks and
uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. These forward-
looking statements speak only as at the date as of which they are made, and none of the Company or any of its respective agents,
employees or advisors intends or has any duty or obligation to supplement, amend, update or revise any of the forward-looking
statements contained herein to reflect any change in the Company’s expectations with regard thereto or any change in events,
conditions or circumstances on which any such statements are based. The information and opinions contained in this presentation are
provided as at the date of this presentation and are subject to change without notice.
Yamal LNG Disclaimer
Yamal LNG Project | London | October 10, 2012
Project overview
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Concept, surveys, pre-FEED (done)
FEED (completed, optimization ongoing), State permits
Final Investment Decision (FID)
Early works, EPC
LNG plant startup by trains
Pilot LNG project on the Yamal Peninsula,
Russia
• Onshore field / 2P gas reserves 879 BCM
• 16.5 mtpa of LNG (3 trains)
• 1 mmt of gas condensate
• LNG plant and port at Sabetta
• Sponsors – NOVATEK (80%) and TOTAL
(20%)
• Supported by Russian government
Yamal LNG
Yamal LNG Project | London | October 10, 2012 2
3
Yamal Peninsula
• The Yamal Peninsula is located in the north of Western Siberia and
is bordered by the Kara Sea to the west and by the Gulf of Ob to the
east
• Its administrative center is Yar-Sale and the Peninsula has a total
population of 16,100 inhabitants
• The Yamal territory is located in the tundra zone. The peninsula
consists of mostly permafrost soil - permafrost depths to 300-500
meters
• The Peninsula’s relief is characterized as smooth with altitude
variations of less than 90 m. Average altitude is approximately 50
meters above sea level
• Long-lasting ice cover (about 300 days a year). Swamps and lakes
cover over 60% of the territory
Yamal LNG Project | London | October 10, 2012
Yamal LNG
-30
-25
-20
-15
-10
-5
0
5
10
15
I II III IV V VI VII VIII IX X XI XII
Polar day
Average annual temperature -9°С
Polar Night
°С
Well pads LNG Plant
Port & MOF
Construction
Camp
Air Strip
Project Site Overview
10 km
• One field based
integrated project
• Close proximity of gas
production facilities to
LNG plant
• Integrated gas
treatment and
liquefaction facility
• Well prepared field
infrastructure
Operation camp
Yamal LNG
Yamal LNG Project | London | October 10, 2012 4
5
Geology and field development
6П75Р
94Р
157Р
115Р
98Р
93Р
1П
72Р
79П
4Р
114Р
110
87Р
2П
80П
113Р
91Р
117Р
3Р
100Р
112Р
82Р
76Р
109Р
7Р
108Р
3.1
21Р
2322Р
2321П
5П
90Р
118Р
101Р
84Р
116Р
81Р
106Р
10Р
86Р
88Р
11Р
8Р
83Р
85Р
89Р
14Р
119Р
71Р
2324Р
97Р
73Р
70П
105Р
250 250 500 750 1000 м0
Изготовлено
экземпляров
Инв. № экз.
Приложение
лист , экз.
Масштаб 1 : 100 000
Руководитель договора:
Ответственный исполнитель:
Составил: Еринов В.Г.
Компьютерная
графика:
Ямало-
Ненецкий
автономный
округ
Тюменская
область
ОАО "НОВАТЭК"
ОАО "Ямал СПГ"
2011 г.
ФОНД ЭКСПЛУАТАЦИОННЫХ СКВАЖИНЮЖНО-ТАМБЕЙСКОГО МЕСТОРОЖДЕНИЯ
1 1 2 км0
Р аспре д е ле ние ф онд а э ксп л уатационны х скваж ин
Ю ТГКМ по кустам .
1 10 ЦК
2 10 ЦК
4 6 ЦК
6 6 ЦК
7 25 ЦК
22 6 ЦК
25 12 ЮВК
26 2 ЦК
29 1 ЦК
30 18 ЮВК
35 10 ЦК
39 17 СВК
40 11 ЦК
41 3 ЦК
42 3 ЦК
43 12 ЦК
44 15 ЦК
45 8 ЦК
46 15 ЮВК
47 27 ЮВК
20 217
куст количество скважин Купол
ЮВК ЦК СВК
1 ПК1 26 0 26 0
2 ХМ1+ХМ2 28 5 20 3
3 ТП1-ТП21
34 7 23 4
4 ТП3-ТП41
33 10 21 2
5 ТП5-ТП122
24 12 10 2
6 ТП130-ТП14-15 19 17 0 2
7 ТП17-ТП191
16 3 13 0
8 ТП20-ТП26 37 17 16 4
217 71 129 17Всегопоместорождению
Объект Пласт Кол-воскважинвтомчисле
8075
8445
8391
8394
8476
8444
8431
8074
8433
80768073
8443
8393
8432
8474
84638462
8392
8072
8442
8071
8441
8451
8464
8472
8471
7431
7074
7075
7443
7444
7445
7441
7442
7451
7071
7072
7073
7471
73027301
7351
6471
6391
5252
5022
5061
5431
5302
5303
5474
5072
5074
5461
5301
5472
5473
5471
5392
5251
5253
5475
5075
5391
5011
5021
5071
4042
4041
4421
4021
4063
40714441
4431
4291
4451
4303
4302
4472
4471
4461
4462
4253
4251
4252
4392
4221
4351
4352
4401
4403-2
4411
4422
4061
4062-2
4262
4261
4301
4391
3252
3251
3461
34733301
3472
3471
3072
3441
3431
3021
3022
3404
3352
3071
3013
3012
3011
3404-2
3403
3401
3402
3355
3353
3354
3352-2
3351
3225
3224
3223
3221
3222
3391
3392
3394
3393
2251-2
2461
2301
2471
2252
2412-2
2411-2
2014-2
2432-2
2431-2
2071-2
2021-2
2441-2
2072-2
2073-22452-2
2391-2
1061
1062
1441
1402
1401
1421
1043
1041
1403
1012
1013
1021
1022
1431
1433
1432 1071
1073 1453
10721451
1352
1351
1042
1452
К40
К42
К41
К43
К44
К45
К46
К47
Northern dome
Central dome
Southern dome
Sabetta
Geology
• Onshore location, with possible offshore extension in
North-East
• Cretaceous sandstone reservoirs between 900 and
2800m
• Appraised by 58 wells (3 drilled and tested in 2011-2012)
• Field covered by 3D-seismic
Field Development
• Production plateau 27 bcm/year
• Peak condensate production at 1.1 mmt/year in 2020-
2021
• 208 production wells, deviated and horizontalized over
500m
• 2 rigs are mobilized in 2012 to start drilling April 2013
• Wells will be drilled on 19 clusters on 3 domes
Yamal LNG
Yamal LNG Project | London | October 10, 2012
Yamal LNG LNG Plant main facilities
4 Full Containment
LNG Tanks x 160,000 m3
3 GC Tanks x 50,000 m3
3 LNG Trains x 5.5 Mtpa Gas
preprocessing
Living quarters
Warehouses Power plant
Gas turbines (380 MW)
• Balanced combination of stick-build and modular construction
• Careful attention to foundation design in permafrost environment
• Standard and internationally proved technologies with:
o minimum number of novelties
o aim at minimizing impact on environment
• Proven APCI C3MR process
• BASF Acid Gas removal process
• Mercury removal
• Air Cooled liquefaction process – less
environmental impact
• Full containment Tanks
Flare
Yamal LNG Project | London | October 10, 2012 6
7
LNG Plant Modularization Concept
• Modularization (~ 240 modules)
• To be transported by specialized ships
• Modules shall be transported and installed using self-
propelled module trailers (SPMT)
• Heavy cranes application on site will be minimized
• Winterization (adapted for wind, snow and low temperature)
Yamal LNG
Yamal LNG Project | London | October 10, 2012
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Yamal LNG
Yamal LNG Project | London | October 10, 2012
Government facilities
Administrative facilities
(customs office, captain’s office,
federal offices)
Ice protection facilities
Port harbor
Approach channel
Seaway channel
Yamal LNG facilities
Administrative facilities
Berths, jetty, and utility system
6
5
4
3
1
2
3
1
2
2
• Agreements with Rosmorport concluded*
• Allocation of operational responsibilities is agreed between federal and Yamal LNG infrastructure
• Required funds are included in federal budget
(officially approved for 2012-2014)
* FSUE “Rosmorport” is responsible for development of the Russian sea transport infrastructure, maintain federal property in the seaports.
1
2
1
3
4
5
6
Seaway and approach channels Port facilities, berth and harbor
Port facilities, berth/jetty and harbor
9
Early Stage Facilities of port Sabetta
MOF
(length 160 m, depth 5 m) Universal deep-water berth
(length 223 m, depth 11 m) Universal deep-water berth
(length 250 m, depth12.5 m)
Customs
and administrative building
Storage areas for construction
materials
Yamal LNG
• Port construction in Sabetta is commenced in July
2012
• 1st stage: construction of the berths for offloading big-
size LNG plant process modules. Ready by 2014
navigation
• 2nd stage: LNG and gas condensate loading
jetty. Ready for first LNG in 2016, in 2018 the
port will be operated over its full design
capacity of 18 mln tons
Yamal LNG Project | London | October 10, 2012
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Port fleet
• Port fleet: preliminary investigation by AARC
o 1 line ice breaker: 39MW
o 1 port ice breaker: 13MW
o 4 port tugs
• Evaluating LNG fuelled propulsion:
o Gas mode operation in ice
o Bunker tank technology and capacity
o Bunkering station
• Conceptual design exists. Project-specific design and specification will be available in 2012
Yamal LNG
Yamal LNG Project | London | October 10, 2012
Shipping Arrangements
• Shipping Solution
– Vessels sailing from Sabetta to markets on long term Time
Charter contracts
– Combination of dedicated ice class and conventional LNG
vessels
– Demonstrated navigability:
o Western route: available all year-round
o Northern Sea Route to Asia: available in summer (July to
November)
• ARC7 Ice Class ship (Russian classification) design
– Strong cooperation with the Russian research institute CNIIMF
– Ship specification developed by Aker Arctic
– Confirmation test of the ship model in HSVA (Hamburg)
– 170,000 m3 ship design feasibility validated in Ice Model tests
• Contracting
– Pre-qualification of Shipowners and Shipyards for the ARC7
vessels achieved
– Ice Class shipping:
o Tender with Shipyards: September 2012
o Tender with Shipowners: September 2012
o Selection: by December 2012
o Ice breaking contingent support solutions under studies
with Atomflot
Indicative shipping routes
Yamal LNG
Yamal LNG Project | London | October 10, 2012 11
Shipping in Arctic waters
large scale NOVATEKs gas condensate cargoes
71 thousand tons – first large scale condensate shipment in August 2010
through Northern Sea Route on «Baltica» tanker
120 thousand tons of condensate in September 2011. «Vladimir Tikhonov»
tanker sailed in 7 days, 14 knots through the North Sea Route:
• LOA 280.5 m, 50 m width, 16.5 m draft,
• Similar parameters as the designed arctic LNG carriers
The successful large scale
cargo shipments of gas
condensate through NSR
in 2010-2012 have
provided exclusive
valuable information on the
ice conditions and proven
feasibility of utilizing this
sea route to ship LNG and
gas condensate to Asia
Atomic icebreaker «50 let
Pobedy» is providing
assistance on ice passage
to «Vladimir Tikhonov»
tanker at NSR
Yamal LNG
12 Yamal LNG Project | London | October 10, 2012
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Project on the Move Yamal LNG
Airstrip preliminary works Construction camp Berth reconstruction
Acting heliport
Living quarters construction on piles
Running well
• FEED completed. It’s being using as a basis for Russian proyekt
documentation development. Design documentation package is submitted
for State approvals. FEED optimization ongoing
• Camp and infrastructure construction. Power plant and power grid,
utility networks, Living quarters, fuel storage, warehouses, airstrip
• Early works
o Well pads, roads, LNG plant site backfilling,
o MOF & RoRo construction
o Procurement – piles and LLIs
• 3 exploration wells has been drilled. Field Development optimized (19
well pads instead of 35)
• EPC tender ongoing. December 2012 – EPC contractor selection, detailed
design and OBT start
Yamal LNG Project | London | October 10, 2012
Challenges and Solutions
Main Challenges Solutions
Site remoteness with limited
access
• Minimizing work at site
• Modularization
• Delivery of modules mainly during summer season
Arctic conditions (permafrost) • Construction on piles to isolate ground from equipments
• Winterization considered design and execution plan
Drilling in Arctic conditions
• Winterized rigs and suitable mud/casing /drilling programs
• Novatek experience in field exploration and development in
Arctic conditions wells drilled in 2011
Complexity and interface
management
• Best world practice (EPC contract)
• Professional management team
• Sponsors support and expertise
Shipping in Arctic conditions
• Ice-class ships developed by the leading industry players for
Arctic conditions
• Availability of Ice breaker support
• Novatek experience: Northern Route recently tested
All technical aspects are known, with reliance on extensive studies, tested technologies
and expertise in similar projects
Yamal LNG
Yamal LNG Project | London | October 10, 2012 14
15
Thank you for attention!
Yamal LNG
Yamal LNG Project | London | October 10, 2012