25 Nov 2009 19:47

NOVATEK shareholders approve contracts with Inter RAO, Mezhregiongas

MOSCOW. Nov 25 (Interfax) - Shareholders in gas producer NOVATEK have approved the terms of a contract with electricity company Inter RAO , acting on behalf of the OGK-1 wholesale generating company; and a contract with gas distributor Mezhregiongas, NOVATEK said in a statement, filed with the London Stock Exchange.

NOVATEK will sell up to 64.7 bcm of gas to Inter RAO in 2010-2015 under the terms published earlier.

NOVATEK will deliver up to 57 billion cubic meters of gas worth 154 billion rubles to OGK-1, which is managed by Inter RAO, in 2010-2015; and up to 7.7 bcm of gas for 23.3 billion rubles directly to Inter RAO in 2010-2015.

The supplement to a contract with Mezhregiongas is for the delivery of 19.6 bcm of gas between October 1, 2009 and December 31, 2011 for 53.5 billion rubles.

The contracts required shareholder approval because they are interested-party transactions: Kirill Seleznev, a member of the NOVATEK board of directors, is also a director at Mezhregiongas and Inter RAO. In addition, Gazprom owns Mezhregiongas and is a shareholder in NOVATEK.

NOVATEL said 99.8% of its shareholders entitled to vote on these issues approved the deals.

OGK-1 has said its power plants including the Nizhnevartovsk GRES, which has been spun off from TNK-BP , used 13.06 bcm of gas in 2008 and that not including Nizhnevartovsk GRES they used 9.9 bcm.