Our core fields and license areas are located in the Yamal-Nenets Autonomous Region, the world’s largest natural gas producing region, which accounts for over 90% of Russia’s natural gas production and approximately 20% of the world’s.  The geographical location of our fields in this gas-rich hydrocarbon basin offers vast opportunities for increasing shareholder value through low-risk, low-cost production and effective reserve replacement. With more than thirteen years of operational history in this region, we are in an optimal position to capitalize on these opportunities.
 
Based on our 2009 results, we have maintained our position as Russia’s second-largest gas producer. In 2009, we accounted for 6% of Russia’s total natural gas output and supplied approximately 8% of the nation’s domestic demand.
 
Gross production for the fourth quarter 2009 totaled 8.98 billion cubic meters of natural gas and 834 thousand tons of liquids (gas condensate and crude oil). Natural gas production increased by 923 million cubic meters, or by 11.4%, and gross liquids production increased by 126 thousand tons, or by 17.8%, as compared with the corresponding gross production in the fourth quarter 2008. 
 
In 2009, gross production for NOVATEK totaled 32.78 billion cubic meters of natural gas and 3,049 thousand tons of liquids. Natural gas production increased by 1.89 billion cubic meters, or by 6.2%, whereas gross liquids production increased by 463 thousand tons, or by 17.9%, as compared with the corresponding gross production in 2008.