Events

30.06.2005 00:00

NOVATEK AND ROSNEFT ENTER COOPERATION AGREEMENT

Moscow, 30 June 2005 — OAO NOVATEK and OAO NK Rosneft have signed a long-term cooperation agreement with respect to the development of the Termokarstovoye field and Kiynsko Chaselskiy license area, which are located in the Krasnoselkupsky district of the Yamal-Nenets Autonomous District (YaNAO). The agreement was signed by NOVATEK Chief Executive Officer, Leonid Mikhelson and Rosneft President, Sergey Bogdanchikov.

The agreement sets forth the principles of cooperation for the development of the Termokarstovoye field (according to the subsoil use license, which is held by a subsidiary of NOVATEK) and the Kiynsko Chaselskiy license area (according to the licenses for subsoil use, which are held by a subsidiary of Rosneft) in order to provide for maximum downstream processing efficiency at these fields.

The Kiynsko Chaselskiy license area is situated 150 km north-east of Tarko-Sale (YANAO). The Termokarstovoye gas and gas condensate field is located 60 km north-east of the Kiynsko Chaselskiy license area. Rosneft and NOVATEK intend to jointly use and develop the transport and downstream infrastructure of these fields.

The parties have agreed to jointly finance the construction of an external pipeline system to transport gas from the Kiynsko Chaselskiy license area, in quantities proportionate to the production of their own fields. The agreement allows NOVATEK to build gas and condensate pipelines from the Termokarstovoye field to the appropriate points of entry into Rosneft’s pipeline system at the Kiynsko Chaselskiy license area. Rosneft will provide NOVATEK with services for the preparation, processing and rail shipment of gas condensate produced at the Termokarstovoye field, using existing and projected infrastructure facilities.

The parties have expressed their intention to participate in the implementation of the social development plan of the Krasnoselkupsky district of YaNAO, and to assist in the environmental enhancement of the territory.

Rosneft and NOVATEK have also signed an agreement whereby Rosneft will purchase from NOVATEK a 34% stake in OAO Selkupneftegas. The transaction amount remains undisclosed.