Novatek is Russia’s largest independent natural gas producer and the second-largest natural gas producer in the country after Gazprom. The company is principally engaged in the exploration, production, processing and marketing of natural gas and liquid hydrocarbons and has almost 20 years of operational experience in the Russian oil and natural gas sector. In 2013, the company will account for 61% of all sales by independent producers and 18% of all gas sold on the domestic market. Novatek’s principal operating areas are concentrated in Yamalo-Nenetsk Region in Western Siberia. Yamalo-Nenetsk is the most significant gas producing region in Russia, accounting for approximately 83% of domestic natural gas production and 16% of global natural gas production.

Novatek is currently required to sell 100% of its natural gas to customers in Russia, mainly power generation companies, industrial users, regional gas distributors and wholesale gas traders. The company generates revenues primarily from natural gas and gas condensate sales and, to a lesser extent, sales of other liquid hydrocarbons.

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