NOVATEK’s Board met in Moscow to review the company’s performance in 2003.

Gross gas production for the NOVATEK group rose more than 43% from 14.2 bcm to 20.33 bcm; NOVATEK’s net gas supplied to consumers was 13.27 bcm. Consumers accounting for the majority of gas sales were located in the; Samara, Tyumen, Chelyabinsk and Perm regions. In 2003 the group’s gross liquid production (oil and condensate) rose 33.7% to 2.34 million tons (1.65 million tons net).

The strong growth in production was made possible by the addition of new wells and the commencement of commercial production at the Yurkharovskoye and Khancheiskoye fields. In January 2003, the first phase of development at the Yurkharovskoye field was launched enabling commercial operation at the field with annual capacity of 5.4 bcm; also in October NOVATEK began supplying gas to industrial consumers from the Khancheiskoye field.

In 2003, the company launched the following capital investment projects:

• Purovsky Condensate Processing Plant with an annual capacity of 1,400 thousand tons of stable condensate and 600 thousand tons of natural gas liquids;

• BOPP-film plant in Novokuibishevsk for the production of plastic packaging materials.

These production facilities are scheduled to commence commercial operation in early 2005.

In 2004, NOVATEK plans to increase gross gas production to 27 bcm. The company’s objective is to reach natural gas production of 50 bcm per annum by 2010, or 7% of total gas produced in Russia.

Investment plans for 2004 anticipate $260 mln in capital expenditures for NOVATEK’s subsidiaries, primarily for the construction of the Purovsky Condensate Processing Plant, the BOPP-film plant and continued development of the Yurkharovskoye field.



Press service of OAO NOVATEK
press@novatek.ru
Tel. In Moscow +7 (095) 721 22 07

Investor Relations Department
ir@novatek.ru
Tel. In Moscow +7 (095) 730 60 20




For Editor:

OAO NOVATEK is one of the largest independent Russian gas producers. Recoverable gas reserves are 1.5 trillion cubic meters (ABC1+C2). The companies’ largest fields are - Yurkharovskoye, East-Tarkosalinskoye and Khancheyskoye – situated in the Yamalo-Nenets Autonomous Region, which accounts for approximately 90 per cent of all Russian production.

The company controls and has equity stakes in the following exploration and production companies: OOO Yurkharovneftegas, OAO NK Tarkosaleneftegas, OOO Khancheyneftegas, OAO Purneftegasgeology, OOO Geoilbent, OAO Selkupneftegas and OAO Tambeineftegas.