HMS Group signs a contract with one of Gazprom subsidiaries for an oil pipeline construction

Tomskgazstroy, a subsidiary of HMS Group, signed a contract for construction of the oil pipeline between Ostaninsk and North Ostaninsk oilfields with Tomskgazprom, a subsidiary of Vostokgazprom.

The scope of works includes the construction of an oil pipeline “Ostaninsk oil and gas field-North Ostaninsk oilfield” with total length of 28 km. along with line facilities, as well as the construction works of intra oil-field gathering systems on Mirny and Ostaninsk fields with total length of 9 km.

Ostaninsk and North Ostaninsk oilfileds are situated in Tomsk region. North Ostaninsk oilfield was put into operation in 2010 and, at present, Tomskgazstroy deploys a program of development drilling and further exploration on this oilfield. In 2012 the company plans to start the trial development of Ostaninsk oil and gas field.

Tomskgazprom is a key customer of the Group. A number of this customer`s projects among which are the construction of “North Vasyugansk oilg and gas field-Myldzhinsk gas field” and construction of oil gathering systems on Kazan oil and gas field and Boltnoe oilfield were implemented involving Tomskgazstroy.

The HMS Group is the leading pump manufacturer and provider of flow control solutions and related services to the oil and gas, nuclear and thermal power generation and water utilities sectors in Russia and the CIS. The HMS Group’s products are mission-critical elements of projects across a diverse range of industries. The Group reported revenues of RUB 20 billion, adjusted EBITDA of RUB 4.4 billion and profit for the period of RUB 3 billion for the nine months ended September 30, 2011. The HMS Group’s global depositary receipts (“GDRs”) are listed under the symbol “HMSG” on the London Stock Exchange.