NOVATEK And CNPC Conclude Agreement On Share Purchase In Yamal LNG

      NOVATEK And CNPC Conclude Agreement On Share Purchase In Yamal LNG

PR Newswire

MOSCOW, Sept. 5, 2013

MOSCOW, Sept. 5, 2013 /PRNewswire/ --Today, in the presence of the President
of Russian Federation Vladimir Putin and the Chairman of People's Republic of
China Xi Jinping, OAO NOVATEK ("NOVATEK") and China National Petroleum
Corporation ("CNPC") concluded an agreement on purchase of a 20% equity share
in the Yamal LNG project ("Project") by CNPC.

The transfer of title to the equity share is subject to receipt of necessary
regulatory approvals and expected to be completed by 01 December 2013.
Following completion of the deal, the shareholder structure of OAO "Yamal LNG"
will be as follows: OAO NOVATEK (60%), Total S.A. (20%) and CNPC (20%).

Chairman of the Board of Directors of CNPC, Zhou Jiping stated "We are
satisfied with the progress of our cooperation. The signed agreement is an
important step in the development of energy projects providing the fast
growing Chinese economy with stable supplies of clean energy resources."

Chairman of the Management Board of NOVATEK, Leonid V. Mikhelson stated
"CNPC's entrance in Yamal LNG is an important milestone for the Project. We
are pleased to welcome a new, strong partner who will contribute its
capabilities and resources to the successful implementation of the Project."

Yamal LNG project envisages the construction of an LNG plant with annual
capacity of 16.5 million tons per annum based on the feedstock resources of
the South-Tambeyskoye field. According to the PRMS reserve standards, the
proven and probable reserves of the South-Tambeyskoye field as of 31 December
2012 were appraised at 907 billion cubic meters of natural gas. The Project
also requires the construction of transport infrastructure including a
sea-port and an airport located at Sabetta (north-east of the Yamal

OAO NOVATEK is Russia's largest independent gas producer and the
second-largest natural gas producer in Russia. Founded in 1994, NOVATEK is
engaged in the exploration, production, processing and marketing of natural
gas and liquid hydrocarbons. Its upstream activities are concentrated in the
prolific Yamal-Nenets Autonomous Region, which is the world's largest natural
gas producing area and accounts for approximately 90% of Russia's natural gas
production and approximately 17% of the world's gas production. NOVATEK is an
open joint stock company established under the laws of the Russian Federation.
NOVATEK's shares and GDRs are listed on MICEX-RTS Stock Exchange in Russia and
the London Stock Exchange (LSE), respectively, under the ticker symbol "NVTK."

CNPC is China's largest oil and gas producer and supplier, as well as one of
the world's major oilfield service providers and a globally respected
contractor in engineering construction. CNPC has presence in 70 countries.


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