HMS Group to implement a turnkey project of central production facility construction on Srednebotubionsk field

HYDROMASHSERVICE, a subsidiary of HMS Group, concluded a contract with Taas Yuryah Neftegazodobycha, a subsidiary of Sberbank, for turnkey construction of a central production facility (CPF) on Srednebotuobinsk oil and gas condensate field.

This project is a unique complex solution which includes project documentation, production and delivery of the equipment, construction and installation services and commissioning.

The contract provides for the participation of several Group subsidiaries in the project: HYDROMASHSERVICE will run the project management, Giprotyumenneftegaz will work out the project documentation, Sibkomplektmontazhnaladka will render the construction and installation services, Neftemash will produce block modular equipment, Dimitrovgradkhimmash will manufacture separation equipment and Sibneftemash will produce tanks and vessels for the project.

Srednebotuobinsk field, situated in the Republic of Sakha, is one of the largest fields in the region with proven resources of 131 mn of oil and 140 bn of gas. New CPF output will be transferred by an oil pipeline to the transfer and acceptance point (TAP) and further to the oil trunk pipeline Eastern Siberia – Pacific Ocean (ESPO). The project will be implemented in short term as the commissioning of CPF is scheduled for the 3d quarter of 2012.

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 13.9 billion, adjusted EBITDA of RUB 3.1 billion and profit for the period of RUB 2 billion for the six month months ended June 30, 2011. The HMS Group’s global depositary receipts (“GDRs”) are listed under the symbol “HMSG” on the London Stock Exchange.