NOVATEK New Field Open, Russia- £19.5m to Community Work 2012!

Thursday, 24 October, 2013

OAO NOVATEK, the Russian oil and gas company quoted on the Russian MICEX-RTS and LSE, today announced the launch of the Urengoyskoye field following the completion of four production wells. Most of NOVATEK’s assets are located within the Olimpiysky license block, in the prolific Yamal-Nenets Autonomous Region; the Urengoyskoye field itself having proved natural gas reserves of 21 bcm, as estimated under SEC reserves methodology at 31 December 2012.

In terms of Corporate Social Responsibility the Company has a web chapter covering their efforts including sections on the environment (http://www.novatek.ru/en/development/environment/):

http://www.novatek.ru/en/development/responsibility/

Seemingly focused within one geographic area, NOVATEK reports to take part in a diverse range of community support programmes including work with indigenous people living in the “Far North”. The Company also sets out the total investment made towards community programmes of £19.5m (RR1.0 billion) during 2012.

“Special priority is given to the performance of our long-term agreements with the municipalities of these regions for financing programs targeting education and youth development, support for low-income families, repair and modernization of socially important facilities and preservation of the culture heritage of the indigenous peoples of the Far North and Russia as a whole. In 2012, NOVATEK invested more than RR 1.0 billion on projects and activities related to the support of indigenous peoples, charitable contributions and educational programs.”

Long income support is a key lifeline for communities operating at such latitiudes. Long harsh winters mean a precarious existence to the poorest members of a community even with the high energy subsidies of Winter. As with other Russian corporations NOVATEK appears to be a strong supporter of tertiary education providing scholarships and education support to gifted students.   

“Recruitment and career guidance for promising employees start with the “Gifted Children” program implemented at School No. 8 in Novokuybyshevsk and School No. 2 in Tarko-Sale. The Company has also implemented two “Grants” programs for schoolchildren and teachers living in Purovsky District of the YNAO. In an effort to create conditions for more effective use of university and college resources in preparing students for future professional activities, the Company has developed and successfully implemented the NOVATEK-VUZ program.”

In addition to Sports progammes and charitable donations NOVATEK also ensures that its citizenship extends East to St Pertersberg and Moscow with significant contributions made towards the Russian State Museum (St.Petersburg) and Moscow’s Kremlin Museum and the State Tretyakov Gallery.

Seemingly a significant sustainability regime is in place at NOVATEK although it would be good to see case studies and specific examples of how the programmes have benefitted individuals on the ground. With such a wide breadth of work undertaken demonstrating the relevance and purpose of initiatives at each level of spending the £19.5m would be of interest, especially seeing how the low income support strategy is benefitting local communities. With the education support, assuming the progammes have been in place for some years, seeing how students have been successfully brought through the scholarship system from start to finish would emphasize a real track record of being a good partner in Russia. How many engineers have NOVATEK helped to produce and have any come to work for the company?

ENDS