Arctic LNG 3, a subsidiary of PAO NOVATEK, drilled the first well at the North-Obskiy license area in Russia, according to a July 27 release.

Leonid Mikhelson, Novatek chairman of the management board, said the license area is characterized by significant geological potential and is a favorable location in terms of logistics. The license area's proximity to the exit from Ob Bay in its Northern part provides a convenient passage of vessels and requires no approach channel, Mikhelson said.

"Arctic LNG 3 potentially represents the next stage in implementing NOVATEK's development strategy to increase LNG production in the Russian Arctic region," Mikhelson said.