Novatek: Gas Production Up by 7.1 Pct (Russia)

January 10, 2013

NOVATEK of Russia said that in the fourth quarter of 2012, the company’s gross production (including share in production by affiliates) totaled 15.30 billion cubic meters of natural gas and 1,162 thousand tons of liquids (gas condensate and crude oil). As a result, the company’s gross production for 2012 amounted to 57.32 billion cubic meters of natural gas and 4,287 thousand tons of liquids.

Natural gas production increased by 3.78 billion cubic meters, or by 7.1% as compared with 2011, whereas liquids production increased by 163 thousand tons, or by 4.0%.

In 2012, NOVATEK processed 4,034 thousand tons of unstable de-ethanized gas condensate at the Purovsky Processing Plant, of which 1,135 thousand tons was processed in the fourth quarter.

Preliminary stable gas condensate export volumes amounted to 2,822 thousand tons in 2012 as compared to 2,981 thousand tons in 2011. As at 31 December 2012, NOVATEK had in transit or storage (recognized as inventory) 461 thousand tons of stable gas condensate compared to 228 thousand tons as at 31 December 2011 largely due to increased hydrocarbon shipments to the Asian Pacific region.

The Company also had 1,099 million cubic meters of natural gas recognized as inventory as at 31 December 2012, of which 1,096 million cubic meters was held in the underground storage facilities.