Today, an arbitration court of the Yamal-Nenets Autonomous Area has given its sanction to an amicable agreement between Urengoygazprom Ltd, JSC Nortgaz and Nortgaz’s shareholders.

In accordance with the agreement, REDI (UK) Ltd will return 51 percent of Nortgaz’s shares to Urengoygazprom within three business days from the amicable agreement sanctioning date. Urengoygazprom, on its part, waived its claims for a 49 percent stake of Nortgaz owned by R.E.D.I Holdings Limited.

The parties adopted a decision to convoke in September a Shareholders’ Meeting of Nortgaz for the purpose of electing a new Board of Directors. The new Board nominees are listed below:

1. Alexander Viktorovich Krasnenkov, Deputy Director General of JSC Sovcomflot;

2. Olga Petrovna Pavlova, Member of JSC Gazprom’s Management Committee, Head of Gazprom’s Asset Management Department;

3. Kirill Gennadiyevich Seleznyov, Member of Gazprom’s Management Committee, Head of Gazprom’s Department of Marketing, Processing of Gas and Liquid Hydrocarbons, General Director of Mezhregiongaz Ltd;

4. Sergey Petrovich Tupitsin, General Director of Nortgaz;

5. Gennadiy Isaakovich Kolesnikov, Executive Director of Nortgaz.

Reference:

On 10 June of this year, JSC Gazprom, Urengoygazprom Ltd and JSC Nortgaz’s shareholders have sealed a legally binding agreement stipulating conveyance by Nortgaz’s shareholders of a 51% stake in Nortgaz to Urengoygazprom, mutual settlement of all legal and other controversies between the parties and joint management of Nortgaz for the purpose of enhancing its market capitalization.

Under the agreement signed, the parties fulfilled a number of pendent conditions necessary for the completion of the dispute settlement procedure, including nominated candidates for the Management Board and Board of Directors of Nortgaz. Under a mutual accord, the Management Board nominees are as follows:

1. Sergey Petrovich Tupitsin, General Director of Nortgaz;

2. Boris Alexeyevich Zimin, Nortgaz’s Deputy Director General for Marketing;

3. Anna Eduardovna Khrustalyova, Chief Accountant of Nortgaz;

4. Vyacheslav Valeriyevich Sotnikov, Financial Director of Nortgaz;

5. Gennadiy Gennadiyevich Yanson, Nortgaz’s Deputy Director General for Production.

The Nortgaz Management Board will be elected by the company’s Board of Directors.

On 5 September of this year, the Federal Anti-Monopoly Service (FAMS) passed a ruling for Urengoygazprom to take action aimed at providing competition in the gas market. FAMS’ ruling was among pendent conditions subject to fulfillment prior to signing the amicable agreement.

Nortgaz was founded in 1993 to develop the Neocomian deposits of the North Urengoy gas condensate field with 332.7 bcm of gas and 52.4 mln t of condensate & oil in overall reserves.

DIVISION OF RELATIONS WITH MASS MEDIA