OAO NOVATEK and China National Petroleum Corporation ('CNPC') concluded a framework agreement on cooperation within the Yamal LNG project (the 'Project). The agreement provides for:

■ acquisition by CNPC of a 20% stake in the Project; ■ conclusion of a long-term contract for supply of at least 3 million tons of LNG per ■ annum; and ■ active assistance in organizing the provision of external financing for the Project from the Chinese financial institutions.

The acquisition of a 20% stake in the Project by CNPC is estimated to be closed by 1 October 2013.

Chairman of the Board of Directors of CNPC Zhou Jiping stated: 'We are glad to conclude this agreement with NOVATEK on our entrance into the Yamal LNG project based on vast conventional gas reserves, guaranteeing long-term sustainable supplies of LNG to China. We acknowledge that Russia is giving a lot of attention to its expansion into the international LNG markets and we welcome the increase in Russian LNG supplies to China'.

Tags: China National Petroleum Corp., NOVATEK