Terneftegas, a joint venture between Russia based Novatek and French company Total has commenced gas and condensate production at Termokarstovoye onshore field in northern Siberia, Russia.
Situated in the Yamalo Nenets Autonomous District of the Russian Federation, the production site is expected to generate nearly 6.6 million m3 of gas and 20,000 barrels of condensate daily.
The site has a combined production capacity of 65,000 barrels of oil equivalent each day.
Total Exploration & Production in Europe and Central Asia senior vice president Michael Borrell said: "Achieved ahead of schedule and below budget, Termokarstovoye, the fourth start-up since the beginning of the year, will contribute to Total's production growth in 2015."
The project includes construction of a gas gathering network, a gas treatment plant, a gas condensate de-ethanisation centre and export pipelines and the infrastructure has been build to adapt to arctic conditions.
The Russian firm holds a 51% stake in the JV with Total owning the remaining 49% interest.
The partners are also developing the $27bn Yamal liquid natural gas (LNG) project in Russia.
Funding for the Yamal project has not been finalised yet since sanctions, imposed by the West on the country, have turned raising money in US dollars to be a challenge, reports The Economic Times.