"We said earlier that we had to start drilling in 2010. But if we receive seismic interpretation data soon enough, we could start drilling at the end of 2009. Anyway, drilling must be launched no later than early 2010," Leonid Mikhelson said on the sidelines of the World Economic Forum in Davos.
In September 2007, Novatek bought a 50% stake in a concession agreement for the exploration and development of the El-Arish offshore deposit in Egypt from Tharwa Petroleum S.A.E.
The offshore block covering approximately 2,300 sq km (888 sq miles) is located along the Mediterranean coast to the north of the Sinai. Half of the block lies at depths of up to 50 meters (164 ft) with the rest located as deep as 500 meters (1,640 ft).
The agreement provides for a minimum exploration period of four years, which will include geophysical studies and the drilling of two wells.
Established in 1994, Novatek is engaged in the prospecting, production and refining of gas and liquid hydrocarbons. Its gas fields are located in the Yamal-Nenets autonomous area in West Siberia, which has the world's largest natural gas reserves. The region accounts for over 90% of Russian natural gas output and around 20% of global gas production.