REG-OAO Novatek NOVATEK launches second methanol production unit

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NOVY URENGOI, Russia--(Business Wire)--

NOVATEK LAUNCHES SECOND METHANOL PRODUCTION UNIT

OAO NOVATEK ("NOVATEK" and/or the "Company") announced the launch of its second
methanol production unit, with throughput capacity of 40,000 tons per annum, at
the Yurkharovskoye field. The first methanol production unit, with throughput
capacity of 12,500 tons per annum, was commissioned at the field in September
2007.

The methanol production units are unique facilities that are fully integrated
into the field`s Complex Gas Preparation Plant, which allowed the Company to
significantly reduce capital expenditures. The units were designed and
manufactured based on the experience and technical solutions of NOVATEK`s
specialists and are the only low-tonnage methanol production units operating at
gas condensate fields in the world.

Methanol is used to prevent condensation in wells and gas gathering systems in
areas with severe climatic temperatures, typical of the Yurkharovskoye field due
to its location beyond the Polar Circle. With the launch of the second methanol
production unit NOVATEK has sufficient capacity to meet current and future
methanol requirements at the Yurkharovskoye gas condensate field as well as its
other fields.

The use of innovative technologies, combined with the latest engineering and
technical solutions, allowed the Company to design the new methanol production
unit to operate with minimal natural gas and water consumption thus minimizing
its impact on the environment. Moreover, the on-site methanol production units
eliminate the need to transport methanol through Russia`s northern rivers, thus
reducing environmental risks and production costs as well as ensuring
operational stability.

The Company has formed a team of trained, certified and experienced specialists
who have operational experience from working at the Yurkharovskoye field`s first
methanol production unit.

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For further information, please contact:

Press Service Investor Relations
+7 (495) 721 2207 +7 (495) 730 6013
press@novatek.ru ir@novatek.ru

***

OAO NOVATEK is Russia`s largest independent gas producer and the second-largest
natural gas producer in Russia. Founded in 1994, the Company is engaged in the
exploration, production, processing and marketing of natural gas and liquid
hydrocarbons. The Company`s upstream activities are concentrated in the prolific
Yamal-Nenets Autonomous Region, which is the world's largest natural gas
producing area and accounts for over 90% of Russia's natural gas production and
20% of the world`s gas production. NOVATEK is an open joint stock company
established under the laws of the Russian Federation. The Company`s shares are
listed on the Russian Trading System (RTS), MICEX Stock Exchange and the London
Stock Exchange (LSE) under the ticker symbol `NVTK` and on the NASDAQ PORTAL
System as Rule 144A GDR under the ticker symbol "NVATY".

OAO Novatek

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