USC AND ATOMFLOT SIGN A CONTRACT FOR BUILDING AN ICEBREAKER FOR YAMAL LNG

Moscow, 30 April 2015. Vyborg Shipyard (part of United Shipbuilding Corporation, or USC) and Atomflot signed a shipbuilding contract for the building of a harbor icebreaker for the Yamal LNG Project.

The 10 MW diesel-powered harbor icebreaker with an innovative propulsion system will be built at the Vyborg Shipyard to support the harbor operations of Yamal LNG at the port of Sabetta. Atomflot will act as the shipowner and operator of the vessel, with the expected delivery date in November 2018.

In November 2014, Yamal LNG and Atomflot signed a port fleet services contract envisaging tug and icebreaker assistance in Sabetta. The contract is valid through 31 December 2040.

The new harbor icebreaker will replace the icebreaker currently used at the port of Sabetta. It will be escorting the LNG tankers through the approach channel and assisting them in the port harbor. The vessel will be capable of effective navigation both bow-ahead and astern modes, maneuvering and performing various specific tasks.

Overview

Yamal LNG Project

Yamal LNG is currently building a 16.5 mtpa natural gas liquefaction plant on the base of the hydrocarbon resources of the South-Tambeyskoye field located in the North-East of the Yamal Peninsula. First LNG production is scheduled for 2017. JSC Yamal LNG shareholders are: NOVATEK (60%), CNPC (20%), and Total (20%).

The Project also envisages construction of the transportation facilities, including the Sea Port and the Airport. The international port of Sabetta is a two-phased construction project comprising the early phase and the main phase and developed via a public-private partnership. Material Offloading Facilities are already in place, and the navigation has been year-round starting from October 2013. The main phase includes construction of ice barriers and LNG and Gas Condensate Jetties.

USC

The United Shipbuilding Corporation (USC) is the largest shipbuilding company in Russia established pursuant to the RF President’s decree in 2007 with 100% state ownership. The USC Holding includes nearly 60 enterprises and shipbuilding companies (major shipyards, dockyards, and engineering agencies). USC has consolidated approximately 80% of the Russian shipbuilding sector. The domestic market is the main focus for USC although it also exports its product to 20 other countries.

Vyborg Shipyard

Vyborg Shipyard is one of the largest shipbuilding companies in the Russian North-West. From the moment of its establishment in 1948, this yard has built over 200 various ships with an overall deadweight of 1.5 mln tons. In May 2012, Vyborg Shipyard became part of the United Shipbuilding Corporation.

Atomflot

Atomflot is a federal state unitary enterprise for nuclear fleet owned by Rosatom, a state corporation. Its purpose is to facilitate operation and maintenance of nuclear icebreakers and support fleet vessels. The key business areas for Atomflot are the icebreaker support to the vessels navigating the Northern Sea Route and calling on the “ice freezing ports” (the ports where navigation is impossible in winter) in the Russian Federation, as well as cargo shipping, assistance to R&D survey parties, emergency response alongside the Northern Sea Route, the Arctic freezing seas and beyond.