NOVATEK reports preliminary 2006 operating data

31 January 2007

Moscow, 31 January, 2007. OAO NOVATEK today reported preliminary production data for 2006.

Gross production totaled 28.7 billion cubic meters of natural gas and 2.5 million tons of liquids (gas condensate and crude oil). Gross natural gas production increased by 3.5 billion cubic meters, or by 13.9%, whereas gross liquids production decreased by 90 thousand tons, or by 3.5%, as compared with the corresponding gross production in 2005. The decrease in gross liquids production was primarily due to the disposal of our 66% interest in OOO Geoilbent, in the second quarter 2005. Excluding the asset disposal, gross liquids production increased by 227 thousand tons, or approximately 10.0%.

In the fourth quarter 2006, gross production for NOVATEK totaled 7.2 billion cubic meters of natural gas and 597 thousand tons of liquids. Gross natural gas production increased by 911 million cubic meters, or by 14.5%, whereas gross liquids production increased by one thousand tons, or by 0.2%, as compared to the corresponding gross production in 2005.

In 2006, NOVATEK processed 2.06 million tons of unstable gas condensate at the Purovsky processing plant, which commenced operations in June 2005. In the fourth quarter the plant’s throughput totaled 498 thousand tons.

NOVATEK’s hydrocarbon production for 2005 and 2006

4Q2005
4Q2006
QoQ%
GROSS PRODUCTION
2005
2006
YoY%
6.30
7.21
14.5 %
Natural gas, bcm
25.22
28.73
13.9%
596
597
0.2%
Liquids, mt
2,586
2,496
-3.5%
0
0
 
Excluding disposed liquids production, mt
317
0
 
596
597
0.2%
Liquids (normalized), mt
2,269
2,496
10.0%

PAO NOVATEK is the largest independent natural gas producer in Russia, and in 2017, entered the global LNG market by successfully launching the Yamal LNG project. 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 mainly in the prolific Yamal-Nenets Autonomous Region, which is the world’s largest natural gas producing area and accounts for approximately 80% of Russia’s natural gas production and approximately 15% of the world’s gas production. NOVATEK is a public 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 “NVTK”.

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