Gazprom’s Headquarters today has hosted a working meeting between Alexander Ananenkov, Acting Chairman of the Gazprom Management Committee and Leonid Mikhelson, Chief Executive Officer of NOVATEK.

The parties addressed the prospects for cooperation between the companies with the account of Gazprom’s upcoming acquisition of a stake in NOVATEK. Particular attention was paid to the issue of interaction in expanded production of gas in the Russian Federation, as prescribed in the Energy Strategy of Russia up to 2020.

Reference:

In June 2006, represented by ZGG GmbH, OAO Gazprom inked with OOO LEVIT and SWGI GROWTH FUND (CYPRUS) LIMITED (the major shareholders of OAO NOVATEK) a preliminary agreement to buy at market value an ownership interest (below 20 per cent of outstanding shares) in NOVATEK. The transaction is anticipated to be completed in August 2006.

Within the said timeframe the parties are to seal a share purchase and sale agreement and a shareholder agreement, which will grant a new shareholder representing Gazprom two seats on the NOVATEK Board of Directors comprising eight members. Under the NOVATEK Charter, this will give the new shareholder sufficient rights to participate in the company’s management.

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 Okrug, 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.