NVTK: OAO Novatek: Yamal LNG and Gazprom Marketing & Trading Singapore sign LNG agreement

  NVTK: OAO Novatek: Yamal LNG and Gazprom Marketing & Trading Singapore sign
  LNG agreement

UK Regulatory Announcement



                              SIGN LNG AGREEMENT

Saint Petersburg, 23 May 2014. Today, at the St. Petersburg International
Economic Forum, Chairman of the Management Board of OAO NOVATEK (“NOVATEK”
and/or the “Company”) Leonid V. Mikhelson and Chairman of the Management Board
of OAO Gazprom Alexey B. Miller signed Heads of Agreement (“Agreement”) for
the supply of liquefied natural gas (LNG) between Yamal Trade and Gazprom
Marketing & Trading Singapore. The document provides for the supply of up to
three (3) million tons of LNG per annum produced by Yamal LNG.

The term of the Agreement is more than 20 years and LNG will be supplied on
the free on board (“FOB”) basis at a transshipment point in Western Europe for
further delivery to the Asian-Pacific region, primarily to India. The LNG
price is crude oil indexed.

Chairman of the Management Board of OAO Gazprom, Alexey B. Miller, noted “This
agreement significantly strengthens the long-term LNG portfolio of Gazprom and
enables us to increase LNG trading volumes and utilize our own fleet of LNG

Chairman of the Management Board of NOVATEK, Leonid V. Mikhelson stated “The
signing of this agreement is another important milestone in implementing the
Yamal LNG project. With the conclusion of this LNG supply agreement we now
have all the necessary preconditions in place from the perspective of LNG
contracting for the successful close of project financing”.


The Yamal LNG Project envisages the construction of a Liquefied Natural Gas
(LNG) Plant with a capacity of 16.5 MTPA based on the hydrocarbon resources of
the South-Tambeyskoye field. As of the 31 December 2013, the field’s proved
and probable gas reserves according to PRMS standards are estimated at 927
billion cubic meters. The start of commercial production is scheduled for
2017. Yamal LNG shareholders include NOVATEK (60%), TOTAL (20%) and CNPC
(20%). Yamal Trade is a wholly owned subsidiary of Yamal LNG.

Gazprom Marketing & Trading Singapore (part of the Gazprom Group) is involved
in LNG trading, shipping and marketing in the Asian-Pacific region.


For further information, please visit www.novatek.ru or contact:

Press Service       Investor Relations
+7 (495) 721 2207  +7 (495) 730 6013


OAO NOVATEK is Russia’s largest independent gas producer and the
second-largest natural gas producer in Russia. Founded in 1994, the Company is
engaged in the exploration, production, processing and marketing of natural
gas and liquid hydrocarbons. The Company’s 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. The Company’s shares are listed in Russia on Moscow
Exchange (MOEX) and the London Stock Exchange (LSE) under the ticker symbol


OAO Novatek
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