Represented by ZGG GmbH OAO Gazprom has closed the deal to purchase 19.4 per cent of OAO NOVATEK’s outstanding ordinary shares from OOO LEVIT and SWGI GROWTH FUND (CYPRUS) LIMITED (the major shareholders of NOVATEK).

The deal will result in two representatives of Gazprom entering the NOVATEK Board of Directors and this, under the NOVATEK Charter, will give the new shareholder sufficient rights to participate in the company’s management. A NOVATEK equity stake to be owned by Gazprom and its affiliates won’t exceed at any given time 19.9 per cent of NOVATEK’s outstanding shares.

The parties pursue the objective of further expanding the business activity of NOVATEK covering the field development and resource base growth sectors. Additionally, NOVATEK will receive the opportunity to get involved in the gasification of Russian regions.

Buying into NOVATEK, which is the fast growing gas company, will enable Gazprom to use extra resources for gas supply to Russian consumers and to conduct a coordinated policy for the Russian Federation gas market development.

Reference:

NOVATEK is Russia’s largest independent natural gas producer and the second-largest natural gas producer in Russia after Gazprom. Founded in 1994, the company is engaged in gas & liquid hydrocarbon exploration, production and processing, and holds licenses for fields and prospects located in the Yamal-Nenets Autonomous District, which is the world’s largest natural gas production province accounting for over 90 per cent of natural gas extraction in Russia and some 20 per cent of gas production worldwide.

NOVATEK is the open joint-stock company set up under the laws of the Russian Federation. The company’s shares are listed on the Russian Trading System (RTS) Stock Exchange and London Stock Exchange (LSE) under the ticker symbol “NVTK” and at NASDAQ PORTAL System as Rule 144A Global Depository Receipts under the ticker symbol “NVATY”.

In June 2006 represented by ZGG GmbH OAO Gazprom has inked with OOO LEVIT and SWGI GROWTH FUND (CYPRUS) LIMITED (the major shareholders of NOVATEK) a preliminary agreement to buy at market value an ownership interest (less than 20% of the outstanding shares) in NOVATEK.