NMNG headquarter office is located in Naryan Mar and the staff is over 98 percent Russian nationals. In 2005, the companies announced the creation of a joint venture on the basis of existing company Narianmarneftegas LLC with interests of 70 percent (LUKOIL) and 30 percent (ConocoPhillips).
On June 20, 2008, there was a start-up of the first phase of CPF Yuzhnoye Khylchuyu, in the mode of comprehensive testing, and on August 28, 2008 industrial operation started. Maximum oil production level in the field is expected to reach 7.5 million tons a year (over 150,000 bbl/d).

The oil is processed at a Central Processing Facility, which accommodates primary oil/gas/water separation. The processed oil production from the YK Field is transported via a 162 km pipeline to the Varandey terminal located northeast of the field for further loading into ice breaking tankers.

The Varandey terminal includes an onshore tank farm, two 24 km offshore pipelines to a loading structure located in 17.5 m depth of water. Varandey has the capacity to export up to 240,000 BOPD, much of which comes from the YK field. Three ice-resistant double-hull Arctic "Class 6" shuttle tankers, owned by Sovcomflot, [capacity: 500,000 barrels each] are used for oil transportation.