NOVATEK Reports Preliminary Operating Data For The Second Quarter And First Half 2013

ST. PETERSBURG, Russia, July 10, 2013 /PRNewswire/ -- OAO NOVATEK ("NOVATEK" and/or the "Company") today reported preliminary production data for the second quarter and first half 2013.

The Company's gross production for the second quarter totaled 15.19 billion cubic meters of natural gas and 1,198 thousand tons of liquids (gas condensate and crude oil). Gross natural gas production increased by 1.15 billion cubic meters, or by 8.2%, and gross liquids production increased by 153 thousand tons, or by 14.6%, as compared with the corresponding gross production in the second quarter 2012.

In the first half 2013, gross production for NOVATEK totaled 31.29 billion cubic meters of natural gas and 2,383 thousand tons of liquids. Natural gas production increased by 2.59 billion cubic meters, or by 9.0%, whereas gross liquids production increased by 254 thousand tons, or by 11.9% as compared with the corresponding gross production in the first half 2012.

In the second quarter and first half 2013, NOVATEK processed 1,211 and 2,401 thousand tons, respectively, of unstable gas condensate at the Purovsky Processing Plant.

In the second quarter 2013, NOVATEK started processing stable gas condensate at the Company's Ust-Luga Fractionation and Transshipment Complex on the Baltic Sea into petroleum products. As at 30 June 2013, 191 thousand tons of stable gas condensate has been processed at the Complex. At the end of the second quarter 2013, the first tanker carrying 80 thousand tons of naphtha was shipped and, as at 30 June 2013, the tanker was on its way to the port of destination thus recognized as inventory in transit.

The Company's preliminary stable gas condensate export volumes amounted to approximately 600 thousand tons for the second quarter 2013 as compared to 785 thousand tons in the corresponding period of 2012. The decrease in sales volumes was mainly due to the launch of the Ust-Luga Complex.

At 30 June 2013, we had approximately 1,380 million cubic meters of natural gas and 447 thousand tons of stable gas condensate and its products, including 129 thousand tons at the Ust-Luga Complex, in storage or transit and recognized as inventory.

NOVATEK's hydrocarbon production

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Information provided in this press release presents expected results of OAO NOVATEK operations in the second quarter and first half 2013. The information represents preliminary assessment only, which can be adjusted after statistical, financial, fiscal and business reporting becomes available. The information on NOVATEK's operational results in this press release depends on many external factors and therefore, provided all permanent obligations imposed by the London Stock Exchange listing rules are unconditionally observed, cannot qualify for accuracy and completeness and should not be regarded as an invitation for investment. Therefore, the results and indicators actually achieved may significantly differ from any declared or forecasted operational results in 2013. OAO NOVATEK assumes no obligation (and expressly declares that it has no such obligation) to update or change any declarations concerning any future results, both due to new information obtained, any future events or for any other reasons.

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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."

SOURCE OAO NOVATEK