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NOVATEK signs marketing agreement with Yeochun Naphtha Cracker Center
OAO NOVATEK (“NOVATEK” or the “Company”), announced today the conclusion of a commercial agreement with the Yeochun Naphtha Cracker Center (“YNCC”), a South Korean petrochemical company, for supplying up to three hundred thousand tons of light naphtha produced at the Ust-Luga Gas Condensate Transshipment and Fractionation complex (“Complex”) in 2013.

First Deputy Chairman of NOVATEK’s Management Board, Mikhail Popov noted: “The contract with YNCC is another step in the expansion of customer portfolio for the Ust-Luga Complex guaranteeing sustainability of our integrated production chain”.

Executive Vice President of YNCC, Paul Y. Joo commented: “NOVATEK has already worked out reliable logistics of product supplies to South Korea, and we are confident in the security of supply of the required volumes of naphtha as a feedstock for our production”.

Note
The Ust-Luga complex includes facilities for transshipment and fractionation of stable gas condensate. The Complex will process up to six million tons of gas condensate per annum and produce light and heavy naphtha, diesel and jet fuel, as well as heating oil. NOVATEK is currently proceeding with commissioning tests at the first stage, which has a capacity of three million tons per annum. Construction works has also started at the second stage of the Complex. The Complex will allow the Company to enter new markets, expand its customer base and increase sales of higher value added products.

Gazprom and NOVATEK extend Memorandum of Cooperation
Gazprom and NOVATEK have extended the Memorandum of Cooperation signed this April until February 1, 2013. According to the document, Gazprom and NOVATEK address possible establishment of joint ventures to build up integrated capacities on liquefied natural gas (LNG) production on the Yamal Peninsula and joint development of the available resource base on the Gydan Peninsula.

Yamal LNG to call for tenders for long lead items
The representatives of Yamal LNG shareholders – OAO NOVATEK and Total – evaluated the status of the Yamal LNG project (“Project”), notably, implementation of the pre-FID (final investment decision) activity plan.

The shareholders highly appreciated the achieved results and the progress made in moving the Project forward according to its accelerated development plan.

Both sides noted high level of maturity of the key technical solutions and design documentation under Russian and international standards (FEED). The LNG Plant design documentation has been submitted for the state expert review. The expert opinion report, which is one of the key conditions for the FID, is expected to be received soon.

Yamal LNG confirmed that the bidding process to award the engineering procurement and construction (EPC) contract for the LNG Plant is progressing according to schedule. The bidders’ proposals will be received in December 2012, which will allow to start development of the detailed design of the LNG Plant in early 2013.

The shareholders also recommended that Yamal LNG begin call for tender procedures for procurement of long lead items prior to the FID in order to keep to the approved accelerated project implementation plan.

Yamal LNG to employ BASF’s technology for the purification of natural gas
BASF and Yamal LNG OAO (shareholders are Novatek OAO and Total) have concluded a license agreement on the use of BASF’s technology for the removal of carbon dioxide from natural gas. The use of the technology, marketed under BASF’s Oase® brand, is a prerequisite for the production of liquefied natural gas (LNG).

NOVATEK starts construction of Sabetta port
OAO NOVATEK (‘NOVATEK’ and/or the ‘Company’) held an official ceremony to mark the start of construction at the Sabetta port and laid a commemorative capsule into its foundation. The Sabetta port will be located on the North-East of the Yamal Peninsula in Yamal-Nenets Autonomous Region (YNAO).

Gazprom and NOVATEK addressing possible LNG production buildup in Yamal
The Gazprom headquarters hosted today a working meeting between Alexey Miller, Chairman of the Company's Management Committee and Leonid Mikhelson, Chairman of the NOVATEK Management Committee. Taking part in the meeting was also Andrey Akimov, Chairman of the Gazprombank Management Board.

Russia: Total launches the development of the Termokarstovoye field
Total today announced that it has taken, together with its partner Novatek, the final investment decision to develop the Termokarstovoye gas and condensates field. This onshore field is located in the Yamal Nenets autonomous district of Russian Federation, 250 kilometers east of Tarko-Sale. The field has a potential of around 47 billion cubic meters of natural gas and about 10 million tons of condensates. The project start-up is expected in 2015 with a production capacity of around 65, 000 barrels of oil equivalent per day (boe/d).

Total and Novatek to join forces for development of Yamal LNG
Total today signed with Novatek the final agreements to jointly develop the Yamal LNG project, becoming the main international partner on this gas liquefaction project with a 20% share. Novatek intends to keep at least a 51% interest in the project.

NOVATEK increases stake in Yamal LNG
OAO NOVATEK (NOVATEK and/or the Company) today announced that it has increased its equity interest in Yamal LNG to 100% by exercising call options through its wholly owned subsidiary, NOVATEK North-West.

NOVATEK increased its equity interest through two call options for 23.9% and 25.1% purchased in July 2009 and March 2011, respectively. The options’ strike price will be paid in instalments with the final payment due by 30 June 2012.

NOVATEK first to navigate the Northern Sea Route in 2011
OAO NOVATEK (NOVATEK and/or the Company) has announced the inaugural voyage of a high-tonnage Panamax class tanker, which has navigated a new route north of the New Siberian Islands. On 29 June 2011, the tanker “Perseverance” set sail from the Russian port of Murmansk carrying a cargo of 60 thousand tons of NOVATEK’s stable gas condensate destined for consumers in China. Icebreaking support for this voyage was provided by Russia’s Atomflot, a government-owned shipping entity, and the tanker is now on course to its final destination.