NOVATEK reports preliminary operating data for first quarter 2014

The decrease in natural gas production was due to the disposal of the Company’s share in Sibneftegas at the end of 2013. Excluding Sibneftegas fields, NOVATEK’s natural gas production increased by 7.1% year-on-year.

NOVATEK processed 1,385 thousand tons of unstable de-ethanized gas condensate at the Purovsky Processing Plant, representing an increase in liquid volumes processed by 16.4% as compared with the first quarter 2013.

In the first quarter 2014, NOVATEK processed 1,005 thousand tons of stable gas condensate at the Ust-Luga Complex launched in June 2013. Preliminary first quarter 2014 product sales volumes aggregated approximately 965 thousand tons, including 775 thousand tons of naphtha, 99 thousand tons of jet fuel, and 91 thousand tons of heating oil and gasoil.

At 31 March 2014, NOVATEK had 806 mmcm of natural gas and 434 thousand tons of stable gas condensate and its products in storage or transit and recognized as inventory. The year-on-year increase in natural gas recorded as inventories was due to abnormally warm weather conditions in the fourth quarter 2013 and first quarter 2014 across NOVATEK’s key regions of sales.

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 MICEX-RTS Stock Exchange and the London Stock Exchange (LSE) under the ticker symbol «NVTK».