NOVATEK PRODUCTION +3.6%

NOVATEK - Moscow, 12 October 2020. PAO NOVATEK (“NOVATEK” and/or the “Company”) reported today preliminary operating data for the third quarter and nine months 2020.

In the third  quarter 2020, NOVATEK’s hydrocarbon production totaled 150.4 million barrels of oil equivalent (boe), including 19.13 billion cubic meters (bcm) of natural gas and 3,024 thousand tons of liquids (gas condensate and crude oil), resulting in an increase in total hydrocarbons produced by 5.2 million boe, or by 3.6% as compared with the third quarter 2019.

In the nine months 2020, NOVATEK’s hydrocarbon production totaled 445.9 million boe, including 56.71 bcm of natural gas and 8,992 thousand tons of liquids, resulting in an increase in total hydrocarbons produced by 4.6 million boe, or by 1.0% as compared to the nine months 2019.

Natural gas sales volumes, including volumes of LNG sold, aggregated 16.56 bcm, representing a decrease of 0.8% as compared to the prior year. Natural gas volumes sold in the Russian Federation in the third quarter 2020 totaled 14.36 bcm, whereas LNG volumes sold on international markets amounted to equivalent of 2.20 bcm. The decrease attributable to volumes sold on international markets was mainly due to the decrease of Yamal LNG shareholders’ share, including NOVATEK’s share, of LNG volumes sold on the spot market, and a corresponding increase in Yamal LNG direct sales under long-term contracts.

In the third quarter and nine months 2020, the Company processed 2,939 and 8,559 thousand tons, respectively, of unstable gas condensate at the Purovsky Processing Plant, representing an increase in processed volumes by 12.1% and 6.8%, as compared with the corresponding periods in 2019. In the third quarter and nine months 2020, NOVATEK processed 1,628 and 5,202 thousand tons, respectively, of stable gas condensate at the Ust-Luga Complex, representing a decrease by 1.7% and increase by 1.6%, as compared with the corresponding periods in 2019.

According to preliminary data, petroleum product sales volumes aggregated 1,348 thousand tons, including 806 thousand tons of naphtha, 221 thousand tons of jet fuel, and 321 thousand tons of fuel oil and gasoil. NOVATEK sold 1,093 thousand tons of crude oil and 603 thousand tons of stable gas condensate.

As at 30 September 2020, NOVATEK had 1.5 bcm of natural gas, including LNG, and 743 thousand tons of stable gas condensate and petroleum products in storage or transit and recognized as inventory.