NOVATEK & SHELL CONTRACT

OAO Novatek announced Thursday that Novatek Gas & Power, a wholly owned trading subsidiary of Novatek, has signed a long-term contract with Shell International Trading Middle East for the supply of LNG from the Yamal LNG project.

The contract stipulates annual supply of approximately 0.9 million tons of LNG for more than 20 years from the volumes that Novatek Gas & Power will purchase from Yamal LNG according to the previously signed contract.

"We are currently finalizing Novatek's contract portfolio for the supply of LNG from the Yamal LNG project. Considering the extensive expertise of Shell, we are planning to further develop our cooperation in the LNG sector," Leonid Mikhelson, chairman of Novatek's management board, said.

"Russia is a country of great importance for Shell. As a global leader in the LNG sector, Shell welcomes signing of a long-term contract with Novatek, which is developing its first LNG project in the Russian Arctic," David Wells, Shell's V.P. of LNG Trading, said.

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