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Moscow, Russia — 10 June 2005 — At the Annual General Meeting (AGM) of OAO NOVATEK (RTS: NVTK), held in Moscow today, Leonid v. Mikhelson, Chairman and CEO of OAO Novatek, reported on the Company’s performance for the year ended 31 December 2004.

Mr. Mikhelson commented: «In 2004, the Company focused on increasing hydrocarbon production and on securing long-term business stability. We have addressed these strategic objectives by consolidating our assets and by further developing our processing facilities.»

In 2004, Novatek’s natural gas sales output, supplied to more than 20 regions of Russia, increased by 22.7% year-on-year. The Tyumen, Samara, Kurgan, Chelyabinsk, Saratov, Perm, Kostroma, Ryazan regions and the Republics of Chuvashia and Udmurtia are amongst the largest regional consumers. During the year, the Company signed supply contracts at State regulated prices to supply natural gas to the Tyumen and Kurgan regions. The main consumers of the Company’s natural gas are power generation plants, metallurgical plants, and wholesale gas suppliers, amongst others.

Novatek’s robust performance was made possible by increasing natural gas and gas condensate production volumes from the Khancheyskoye and Yurkharovskoye fields as well as the launch of the condensate de-ethanization unit at the East-Tarkosalinskoye field.

In 2004, Novatek continued the construction of the Purovsky ZPK, a condensate processing plant, as part of its vertical integration strategy. The Purovsky ZPK, which was formally launched on 3 June 2005. During 2004, the Company also constructed the BOPP-film plant in the Samara region, which has recently been completed. Novatek is currently conducting the necessary tests prior to the official launch of the plant.

In December 2004, the Company increased its equity stakes in OOO NK Tarkosaleneftegas and OOO Khancheyneftegas to 100 percent through an additional share emission.

All resolutions proposed today at the AGM today were approved by the Company’s shareholders.

PAO NOVATEK is one of the largest independent natural gas producers 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. Upstream activities of the Company’s subsidiaries and joint ventures are concentrated mainly in the prolific Yamal-Nenets Autonomous Area, 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.