NOVATEK: new major player on global LNG market in the world

globally among publicly traded globally among publicly traded companies by proved natural companies by natural gas №3 gas reserves №8 production volumes

bcm bcm

Gazprom 18 264 471 Petrochina 2 300 Shell 118 NOVATEK 2 098 ExxonMobi 113 Rosneft 1 714 Petrochina 97 ExxonMobil 1 562 BP 78 BP 1 276 Total 69 Shell 1 145 Rosneft 68 Total 920 NOVATEK 63 Chevron 870 Chevron 62 Lukoil 670 Eni 50

gas liquids gas liquids Reserves Production bcm mt bcm mt С1+С2 6 068 778 2017 63,4 11,8 PRMS 3 879 366 SEC(1P) 2098 165 as of 01/ 01/ 2018 2 Yamal LNG

RUSSIAN FEDERATION CURRENT PROJECT STATUS:

• Project cost – $27 bln Yamal LNG

Sabetta • Project financing from Russia, China, France, Japan, South-Tambeyskoye field Italy, Germany, Sweden, Austria in total amount

of $19 bln equivalent

SHAREHOLDING STRUCTURE • Design capacity of the plant’s three trains is 16.5 mtpa 50.1% • Over 9 months of operation the plant has shown 20.0% possibility to increase its design capacity by 4-5%

20.0%

9.9%

3 • Train 1 started up in December 2017 • Train 2 started up in August 2018 • Train 3 started up in December 2018 1 year ahead of schedule 4 Yamal LNG

The modular approach used in Yamal LNG construction allowed to reach commissioning in three years and considerably decrease the environmental impact

5 Sea port International Airport

6 Yamal LNG Train 4 «Arctic Cascade» proprietary liquefaction technology Yamal LNG

LIQUEFACTION TRAIN UP TO 1 MTPA South-Tambeyskoye field

START-UP IN 4Q 2019 TRAIN 4 UTILIZES EXISTING INFRASTRUCTURE TO LOWER LNG PRODUCTION COSTS 7 The Arctic Cascade process

General Designer:

Cryogenic heat exchanger, nitrogen expanders Gas turbine unit

Compressor

Gas coolers Cryogenic pumps and expanders

90% OF THE EQUIPMENT IS SOURCED FROM THE RUSSIAN INDUSTRY 8 Gas liquefaction unit

Feed gas GTU noise and heat Ethane compressor Ethane compressor comporessor insulating case Main gearbox (integrally geared) valve units

Maintenance platfroms Ethane compressor DGS panels

Nitrogen compressor DGS panels

Nitrogen compressor

Gas treatment unit for DGS panels

Feed gas booster compressor DGS panel

Feed gas compressor Nitrogen compressor Oil supply block-box Air cooler oil valve unit valve unit

9 Project geography

Sabetta

Kazan Dimitrovgrad Nizhny Novgorod

Voronezh Gagarin Borisoglebsk Podolsk Balashikha

Kurgan Chelyabinsk Ekaterinburg

Arkhangelsk

Krasnodar

10 Arctic LNG 2 THE CONCEPT OF THE FUTURE PLANT • LNG trains based on gravity-based structures (GBS) • GBS fabricated and assembled at the Offshore Superfacility Construction Yard IMPLEMENTATION STAGE • Pre-FEED stage completed. • FEED stage completed. • On December 2018 first EPC contract concluded on 3 GBS bases • Detailed design and key equipment procurement stage started in 1Q 2019 SCOPE OF EQUIPMENT AND MATERIALS FOR 3 TRAINS • More than 2 000 items of process equipment (heat exchangers, columns, separators, compressors, pumps, etc.) • More than 10 000 units of valves • Approximately 40 000 tons of piping • Approximately 200 000 tons of steel structures • More than 200 000 tons for the concrete bed

Murmansk 19.8 Yamal LNG mtpa

3х3х6.6 mtpa Arctic LNG 2

11

GBS-based LNG trains

Targeted decrease of Arctic LNG 2 plant construction cost compared to Yamal LNG 30% Additional costs reduction potential through the scalable construction of GBS-based LNG trains

12 Offshore Topside module GBS construction & topside Superfacility fabrication complex module integration complex

Pipe spool Accommodation Belokamenka fabrication camp for up to Construction Center Gydan Peninsula workshops 15,000 people Reinforced concrete Concrete structures batch fabrication (OSCC) plant shops Barents Sea

The facility construction started Belokamenka

Dry docks in August 2017 2х (415x175 m) Murmansk TOTAL AREA 260 HA

Summer 2018 OSCC is the world’s first complex for industrial construction of GBS-based LNG trains ensuring possibility of their batch manufacturing

Earthworks and blasting activities

Dry dock construction Berth construction TOTAL AREA OF ALLOCATED LAND PLOTS IS 446 HA 13 Localization of production

Kola Yard Murmansk

Kliver TECHNOLOGIES TO BE LOCALIZED Petrozavodskmash Kaliningrad Vyborg Vyborg (USC) Petrozavodskmash (Rosatom) • Equipment for feed gas treatment and

Izhorskiye Zavody Admiralty Shipyard dehydration Saint Petersburg (OMZ) Saint Petersburg (USC) «Zvezdochka» Ship Repair Centre REP Holding Severodvinsk (USC) Saint Petersburg • Electrical equipment

Russian Gas Turbines • Steel structures Rybinsk Dzerzhinskkhimmash Cryogenmash Dzerzhinsk Balashikha (OMZ) (PG Generatsiya) • Piping for modules Ordzhonikidze Plant Podolsk (Rosatom) • Refrigerant compressors for LNG plants Belenergomash-BZEM Belgorod Penzkhimmash Penza Tambovskiy Komsomolets Uralkhimmash • Cryogenic heat exchangers Tambov Ekaterinburg (OMZ) Lada-Flekt Borkhimmash Uralenergomontazh Tolyatti Atommash Borisoglebsk Salavatneftemash Berezovskiy (OMZ) Volgodonsk (Rosatom) Salavat Tyazhmash KONAR Setting-up of Russian design and engineering Syzran Chelyabinsk RKTs-Progress center and localization of LNG plant GK Electroshield LLC - TM Samara Kurgankhimmash KROHNE Engineering Kurgan Samara Chelyabinsk construction Metallurgical Plant Chelyabinsk

IT IS PLANNED TO ENGAGE 800 RUSSIAN COMPANIES 14 New delivery routes Rudolf Samoylovich

Christophe de Margerie Yamal LNG 17.4 mtpa

RUSSIAN FEDERATION

GREAT BRITAIN

BELGIUM Vladimir Rusanov

FRANCE

USA SPAIN S.KOREA

CHINA

INDIA Fyodor Litke Vladimir Vize

BRAZIL

Boris Vilkitskiy Eduard Toll Western route to Asia 36 days

Eastern route to Asia (via transshipment on Kamchatka) 19 days

15 LNG transshipment complex in Kamchatka and Murmansk

Murmansk transshipment facility FOB Arctic LNG 2 19.8 mtpa Yamal LNG 17.4 mtpa RUSSIAN FEDERATION

Kamchatka GREAT transshipment BRITAIN facility FOB BELGIUM

FRANCE

USA SPAIN S.KOREA JAPAN

CHINA

PAKISTAN BANGLADESH MYANMAR TAIWAN

INDIA VIETNAM

THAILAND THE PHILIPPINES SRI LANKA SINGAPORE

MALAYSIA

INDONESIA

BRAZIL

16 Project execution schedule

Start of works at OSCC Start-up of Start-up of Start-up of Start-up of 3 LNG trains Vysotsk Train I Vysotsk Train II Arctic LNG 2 Train I

11 18 19.5 26 33 39 57 mmt mmt mmt mmt mmt mmt mmt

2017 2018 2019 2021 2022-23 2023-24 2024-25 2025-30

Start-up of Start-up of Start-up of Yamal LNG Train II Yamal LNG Train III Arctic LNG 2 Train II

Start-up of Start-up of Start-up of the LNG transshipment Start-up of Yamal LNG Train I Yamal LNG Train IV complexes in Kamchatka and Murmansk Arctic LNG 2 Train III

17