GASTECH, London October, 2012

Yamal LNG

Project overview

Gleb Luxemburg CEO, Yamal LNG

1

This presentation does not constitute or form part of, and should not be construed as, an offer to sell or issue or the solicitation of an

offer to buy or acquire securities of the Company or any of its subsidiaries in any jurisdiction or an inducement to enter into investment

activity in any jurisdiction. Neither this presentation nor any part thereof, nor the fact of its distribution, shall form the basis of, or be

relied on in connection with, any contract or commitment or investment decision whatsoever. The information contained in this

presentation has not been independently verified. The information in this presentation is subject to verification, completion and change

without notice and neither the Company is under any obligation to update or keep current the information contained herein.

Accordingly, no representation or warranty, express or implied, is made or given by or on behalf of the Company or any of its respective

members, directors, officers or employees nor any other person accepts any liability whatsoever (in negligence or otherwise) for any

loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection therewith.

This presentation and the information contained herein does not constitute and should not be construed as an offer to sell or the

solicitation of an offer to buy securities in the United States as defined in Regulation S under the US Securities Act of 1933 (the

"Securities Act"). Any securities of the Company may not be offered or sold in the United States absent registration or an exemption

from registration under the Securities Act. The Company has not registered and does not intend to register any portion of the Offering

in the United States or to conduct a public offering of securities in the United States.

This presentation does not constitute a public offering or an advertisement of securities in the Russian Federation and does not

constitute an offer or a proposal to make offers or to acquire any securities in the Russian Federation.

This presentation contains "forward-looking statements" which include all statements other than statements of historical fact. Such

forward-looking statements can often be identified by words such as "plans," "expects," "intends," "estimates," "will," "may," "continue,"

"should" and similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other important

factors beyond the Companys control that could cause the actual results, performance or achievements of the Company to be

materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Such

forward-looking statements are based on numerous assumptions regarding the Companys present and future business strategies and

the environment in which the Company will operate in the future. By their nature, forward-looking statements involve risks and

uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. These forward-

looking statements speak only as at the date as of which they are made, and none of the Company or any of its respective agents,

employees or advisors intends or has any duty or obligation to supplement, amend, update or revise any of the forward-looking

statements contained herein to reflect any change in the Companys expectations with regard thereto or any change in events,

conditions or circumstances on which any such statements are based. The information and opinions contained in this presentation are

provided as at the date of this presentation and are subject to change without notice.

Yamal LNG Disclaimer

Yamal LNG Project | London | October 10, 2012

Project overview

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Concept, surveys, pre-FEED (done)

FEED (completed, optimization ongoing), State permits

Final Investment Decision (FID)

Early works, EPC

LNG plant startup by trains

Pilot LNG project on the Yamal Peninsula,

Russia

Onshore field / 2P gas reserves 879 BCM

16.5 mtpa of LNG (3 trains)

1 mmt of gas condensate

LNG plant and port at Sabetta

Sponsors NOVATEK (80%) and TOTAL

(20%)

Supported by Russian government

Yamal LNG

Yamal LNG Project | London | October 10, 2012 2

3

Yamal Peninsula

The Yamal Peninsula is located in the north of Western Siberia and

is bordered by the Kara Sea to the west and by the Gulf of Ob to the

east

Its administrative center is Yar-Sale and the Peninsula has a total

population of 16,100 inhabitants

The Yamal territory is located in the tundra zone. The peninsula

consists of mostly permafrost soil - permafrost depths to 300-500

meters

The Peninsulas relief is characterized as smooth with altitude

variations of less than 90 m. Average altitude is approximately 50

meters above sea level

Long-lasting ice cover (about 300 days a year). Swamps and lakes

cover over 60% of the territory

Yamal LNG Project | London | October 10, 2012

Yamal LNG

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Polar Night

http://upload.wikimedia.org/wikipedia/commons/6/65/Russian_Federation_(orthographic_projection).svg

Well pads LNG Plant

Port & MOF

Construction

Camp

Air Strip

Project Site Overview

10 km

One field based

integrated project

Close proximity of gas

production facilities to

LNG plant

Integrated gas

treatment and

liquefaction facility

Well prepared field

infrastructure

Operation camp

Yamal LNG

Yamal LNG Project | London | October 10, 2012 4

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Geology and field development

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Northern dome

Central dome

Southern dome

Sabetta

Geology

Onshore location, with possible offshore extension in

North-East

Cretaceous sandstone reservoirs between 900 and

2800m

Appraised by 58 wells (3 drilled and tested in 2011-2012)

Field covered by 3D-seismic

Field Development

Production plateau 27 bcm/year

Peak condensate production at 1.1 mmt/year in 2020-

2021

208 production wells, deviated and horizontalized over

500m

2 rigs are mobilized in 2012 to start drilling April 2013

Wells will be drilled on 19 clusters on 3 domes

Yamal LNG

Yamal LNG Project | London | October 10, 2012

Yamal LNG LNG Plant main facilities

4 Full Containment

LNG Tanks x 160,000 m3

3 GC Tanks x 50,000 m3

3 LNG Trains x 5.5 Mtpa Gas

preprocessing

Living quarters

Warehouses Power plant

Gas turbines (380 MW)

Balanced combination of stick-build and modular construction

Careful attention to foundation design in permafrost environment

Standard and internationally proved technologies with:

o minimum number of novelties

o aim at minimizing impact on environment

Proven APCI C3MR process

BASF Acid Gas removal process

Mercury removal

Air Cooled liquefaction process less

environmental impact

Full containment Tanks

Flare

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LNG Plant Modularization Concept

Modularization (~ 240 modules)

To be transported by specialized ships

Modules shall be transported and installed using self-

propelled module trailers (SPMT)

Heavy cranes application on site will be minimized

Winterization (adapted for wind, snow and low temperature)

Yamal LNG

Yamal LNG Project | London | October 10, 2012

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Yamal LNG

Yamal LNG Project | London | October 10, 2012

Government facilities

Administrative facilities

(customs office, captains office,

federal offices)

Ice protection facilities

Port harbor

Approach channel

Seaway channel

Yamal LNG facilities

Administrative facilities

Berths, jetty, and utility system

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Agreements with Rosmorport concluded*

Allocation of operational responsibilities is agreed between federal and Yamal LNG infrastructure

Required funds are included in federal budget

(officially approved for 2012-2014)

* FSUE Rosmorport is responsible for development of the Russian sea transport infrastructure, maintain federal property in the seaports.

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Seaway and approach channels Port facilities, berth and harbor

Port facilities, berth/jetty and harbor

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Early Stage Facilities of port Sabetta

MOF

(length 160 m, depth 5 m) Universal deep-water berth

(length 223 m, depth 11 m) Universal deep-water berth

(length 250 m, depth12.5 m)

Customs

and administrative building

Storage areas for construction

materials

Yamal LNG

Port construction in Sabetta is commenced in July

2012

1st stage: construction of the berths for offloading big-

size LNG plant process modules. Ready by 2014

navigation

2nd stage: LNG and gas condensate loading

jetty. Ready for first LNG in 2016, in 2018 the

port will be operated over its full design

capacity of 18 mln tons

Yamal LNG Project | London | October 10, 2012

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Port fleet

Port fleet: preliminary investigation by AARC

o 1 line ice breaker: 39MW

o 1 port ice breaker: 13MW

o 4 port tugs

Evaluating LNG fuelled propulsion:

o Gas mode operation in ice

o Bunker tank technology and capacity

o Bunkering station

Conceptual design exists. Project-specific design and specification will be available in 2012

Yamal LNG

Yamal LNG Project | London | October 10, 2012

Shipping Arrangements

Shipping Solution

Vessels sailing from Sabetta to markets on long term Time

Charter contracts

Combination of dedicated ice class and conventional LNG

vessels

Demonstrated navigability:

o Western route: available all year-round

o Northern Sea Route to Asia: available in summer (July to

November)

ARC7 Ice Class ship (Russian classification) design

Strong cooperation with the Russian research institute CNIIMF

Ship specification developed by Aker Arctic

Confirmation test of the ship model in HSVA (Hamburg)

170,000 m3 ship design feasibility validated in Ice Model tests

Contracting

Pre-qualification of Shipowners and Shipyards for the ARC7

vessels achieved

Ice Class shipping:

o Tender with Shipyards: September 2012

o Tender with Shipowners: September 2012

o Selection: by December 2012

o Ice breaking contingent support solutions under studies

with Atomflot

Indicative shipping routes

Yamal LNG

Yamal LNG Project | London | October 10, 2012 11

Shipping in Arctic waters

large scale NOVATEKs gas condensate cargoes

71 thousand tons first large scale condensate shipment in August 2010

through Northern Sea Route on Baltica tanker

120 thousand tons of condensate in September 2011. Vladimir Tikhonov

tanker sailed in 7 days, 14 knots through the North Sea Route:

LOA 280.5 m, 50 m width, 16.5 m draft,

Similar parameters as the designed arctic LNG carriers

The successful large scale

cargo shipments of gas

condensate through NSR

in 2010-2012 have

provided exclusive

valuable information on the

ice conditions and proven

feasibility of utilizing this

sea route to ship LNG and

gas condensate to Asia

Atomic icebreaker 50 let

Pobedy is providing

assistance on ice passage

to Vladimir Tikhonov

tanker at NSR

Yamal LNG

12 Yamal LNG Project | London | October 10, 2012

13

Project on the Move Yamal LNG

Airstrip preliminary works Construction camp Berth reconstruction

Acting heliport

Living quarters construction on piles

Running well

FEED completed. Its being using as a basis for Russian proyekt

documentation development. Design documentation package is submitted

for State approvals. FEED optimization ongoing

Camp and infrastructure construction. Power plant and power grid,

utility networks, Living quarters, fuel storage, warehouses, airstrip

Early works

o Well pads, roads, LNG plant site backfilling,

o MOF & RoRo construction

o Procurement piles and LLIs

3 exploration wells has been drilled. Field Development optimized (19

well pads instead of 35)

EPC tender ongoing. December 2012 EPC contractor selection, detailed

design and OBT start

Yamal LNG Project | London | October 10, 2012

Challenges and Solutions

Main Challenges Solutions

Site remoteness with limited

access

Minimizing work at site

Modularization

Delivery of modules mainly during summer season

Arctic conditions (permafrost) Construction on piles to isolate ground from equipments

Winterization considered design and execution plan

Drilling in Arctic conditions

Winterized rigs and suitable mud/casing /drilling programs

Novatek experience in field exploration and development in

Arctic conditions wells drilled in 2011

Complexity and interface

management

Best world practice (EPC contract)

Professional management team

Sponsors support and expertise

Shipping in Arctic conditions

Ice-class ships developed by the leading industry players for

Arctic conditions

Availability of Ice breaker support

Novatek experience: Northern Route recently tested

All technical aspects are known, with reliance on extensive studies, tested technologies

and expertise in similar projects

Yamal LNG

Yamal LNG Project | London | October 10, 2012 14

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Thank you for attention!

Yamal LNG

Yamal LNG Project | London | October 10, 2012