The Gazprom Management Committee has considered the issue related to the program for energy saving technologies introduction.

The Company’s specialized subdivisions were tasked to elaborate and submit for approval a draft Energy Saving Program of Gazprom for 2011–2013.

The Gazprom headquarters hosted a working meeting of Alexander Ananenkov, Deputy Chairman of the Company’s Management Committee with Members of the Shtokman Development AG Board of Directors – Arnaud Breuillac, Total’s Senior Vice-President for Central Europe and Continental Asia, and Torgeir Kydland, Statoil’s Senior Vice-President for Eurasia, Middle East and Asia.

The parties addressed the progress with the preparations for the Shtokman field development. Particular attention was paid to the issues related to the development of Phase 1 Schedule taking into account the decisions taken at the Shtokman Development AG Board of Directors meeting on February 5, 2010.

The Gazprom headquarters hosted today a meeting of the Company’s Coordinating Committee for Environmental Protection and Energy Efficiency. The meeting was moderated by Alexander Ananenkov, Deputy Chairman of the Gazprom Management Committee, Chairman of the Coordinating Committee.

Taking part in the meeting were Valery Golubev, Deputy Chairman of the Gazprom Management Committee and Members of the Company’s Management Committee: Oleg Aksyutin, Head of the Gas Transportation, Underground Storage and Utilization Department, Yaroslav Golko, Head of the Investment and Construction Department, Viktor Ilyushin, Head of the Department of Relationships with Regional Authorities of the Russian Federation, as well as heads of the Gazprom Administration’s specialized subdivisions and Gazprom gaznadzor.

The meeting considered the progress in preparing the Gazprom Environmental Management System for the certification procedure pursuant to the ISO 14001 standard. It was noted that the Task Force on streamlining the system had endorsed the plan of preparations for the certification and elaborated the necessary documents, as well as approved the schedule for introducing environmental management systems within Gazprom’s subsidiaries.

The Coordinating Committee approved Gazprom’s Corporate Environmental Targets. These include:

• cutting down on methane and nitrogen oxide emissions;
• reducing waste dumping;
• saving natural gas consumed for the corporate technological needs;
• introducing an environmental management system in compliance with the ISO 14001 standard.

Approval was also given to the Coordinating Committee Plan of Actions for 2010.

Background:

The Gazprom headquarters hosted a meeting dedicated to operation and expansion of above-ground technological equipment of underground gas storage (UGS) facilities. The meeting was moderated by Oleg Aksyutin, Member of the Management Committee – Head of the Gas Transportation, Underground Storage and Utilization Department of Gazprom.

Taking part in the meeting were heads and experts from Gazprom’s specialized subdivisions, Gazprom UGS, Gazprom transgaz Volgograd, Gazprom transgaz Saratov, Gazprom transgaz Ufa, Kubangazprom, Gazprom invest Zapad, Gazprom invest Yug, Podzemgazprom, Gazprom VNIIGAZ, VNIPIgazdobycha, Gazproektengineering, VNIPITRANSGAZ, Giprospetsgaz and Gazpromenergodiagnostika.

It was underlined that during long-lasting cold spells of the 2009–2010 autumn/winter period, reliable operation of UGS as an integral part of the Russian Unified Gas Supply System (UGS) was of special significance. At the same time, build-up of UGS daily send-out capacity remains a crucial task.

In this respect the meeting participants looked at the current operation of Russian UGS facilities and the measures to raise their daily send-out capacity. In particular, the discussion centered on the interaction of Gazprom UGS with customer organizations when executing investment projects targeted at promoting the reliability and productivity of the Nevskoye, Krasnodarskoye and Kuschevskoye UGS facilities and Kanchurinsko-Musinsky UGS complex.

The meeting also addressed the construction of the Volgogradskoye and Kaliningradskoye UGS facilities – the first gas storages created in salt caverns.

Following the meeting results, Gazprom’s specialized subdivisions and subsidiaries were tasked with further UGS expansion in order to secure the reliability and uninterrupted operation of the Unified Gas Supply System. The participants defined top-priority activities on UGS overhaul, construction and re-construction for the current year and for the short-term prospect.

Today Nadym hosted a joint meeting of the Presidium of the Siberian Branch of the Russian Academy of Sciences (SB RAS) and Gazprom dedicated to the potential introduction of the R&D results achieved by academic institutes in comprehensive development of the Yamal Peninsula fields.

Taking part in the meeting were Oleg Aksyutin, Member of the Management Committee – Head of the Gas Transportation, Underground Storage and Utilization Department of Gazprom; Vsevolod Cherepanov, Head of the Gas, Gas Condensate and Oil Production Department of Gazprom; heads from SB RAS and Sergey Konovalov, Deputy Governor of the Yamal-Nenets Autonomous Okrug (YaNAO). The meeting was also attended by heads from Gazprom dobycha Nadym, Gazprom dobycha Noyabrsk, Gazprom dobycha Orenburg, Gazprom dobycha Urengoy, Gazprom dobycha Yamburg, VNIPIgazdobycha and representatives from local authorities of the Nadym District municipal entity.

Addressing the audience, Oleg Aksyutin emphasized that Gazprom took great care of raising environmental safety and energy efficiency. When delivering large-scale strategic projects, for instance, the Yamal megaproject, the Company is oriented at wide application of innovative technologies and cutting-edge energy saving equipment. The efforts by experienced specialists of Gazprom combined with the potential of Russia’s fundamental and applied science will step this process up.

The meeting heard reports on recent R&D by the RAS institutes in petroleum geology and geophysics, petrochemistry and construction operations in permafrost areas. Special attention was paid to the YaNAO socioeconomic advancement, biomedical, social and psychological aspects of labor activities in the Extreme North. The expertise gained may be applied by Gazprom when developing Yamal’s fields.

Following the meeting results, decisions were taken to expand the cooperation of Gazprom with the RAS institutes when implementing the Company’s large-scale strategic projects.

The Gazprom headquarters hosted today a working meeting between Alexey Miller, Chairman of the Company’s Management Committee and Viktor Kress, Governor of the Tomsk Oblast.

The parties addressed the issues of the Tomsk Oblast gasification. A focus was placed on the potential construction of inter-settlement gas pipelines from the Novokolomino gas distribution station to the settlement of Podgornoye and from the Melnikovo gas distribution station to the settlements of Pobeda and Kireyevsk, as well as a gas lateral to the town of Asino.

A working meeting was held at the Gazprom headquarters between Alexander Medvedev, Deputy Chairman of the Company’s Management Committee and Milorad Dodik, Prime Minister of the Republika Srpska.

The parties negotiated the cooperation in the gas supply area, the possible participation of the Republika Srpska in the South Stream project, as well as oil fields development in the Republika. The meeting also outlined further steps aimed at the cooperation deepening.

Today at the Gazprom headquarters Alexey Miller, Chairman of the Company’s Management Committee and Oleg Chirkunov, Governor of the Perm Krai signed an Agreement of Cooperation between Gazprom and the Perm Krai for an indefinite period.

Oleg Chirkunov and Alexey Miller

The document envisages the following areas of the parties’ cooperation in the region:

• arranging steady gas supply to consumers;
• gasifying population centers;
• developing and improving the sustainable gas supply system;
• supplying liquefied natural gas to distant population centers;
• building up the capacities for natural gas utilization as a motor fuel;
• developing and adopting gas-saving technologies;
• delivering projects to improve measurement accuracy at gas flow metering stations;
• assuring environmental safety and rational nature management.

The Agreement fixes the parties’ intentions to jointly elaborate the measures aimed at the energy resource balance improvement and wider energy alternatives utilization in the Krai. In order to reinforce the regional energy base, it is projected to launch economically viable projects for power sources development on the basis of new-generation power units.

In addition, Gazprom and the Perm Krai will create in the region an energy-saving program providing for the utilization of energy-saving technologies and modern gas-powered facilities.

The Perm Krai will ensure timely and full payment for the current gas supplies by state-funded organizations and will assist Gazprom in taking of actions on observing the gas consumption discipline.

Gazprom will be provided with the necessary assistance in registering land plots for the construction of production and social welfare facilities.

On its part, Gazprom will secure reliable gas supply to the Perm Krai consumers. The Company will help allocate the prescribed amounts of natural gas for regional enterprises that promote manufacturing of import-substituting products, as well as application of energy-saving technologies and advanced gas-powered equipment.

Alexey Miller and Oleg Chirkunov addressed the current aspects of cooperation between Gazprom and the Perm Krai, touching upon the measures to repay consumers’ debt for supplied natural gas. In addition, the parties considered the progress with reconstructing the Chusovoy – Berezniki – Solikamsk 1 & 2 gas laterals, as well as the prospects for acquiring the first string of the Ocher – Kudymkar – Kupros gas lateral by Gazprom.

The Gazprom headquarters hosted today a working meeting between Alexey Miller, Chairman of the Gazprom Management Committee and Sergey Katanandov, Head of the Republic of Karelia.

The parties discussed the implementation of the Cooperation Agreement and the Gasification Accord in the Republic. Particular attention was paid to the prospects for constructing and bringing onstream four inter-settlement gas pipelines including the pipeline from the Teplichny state-owned farm to the Solomennoye residential district of the Petrozavodsk city, and constructing an inter-settlement gas pipeline from the Berezovskaya gas distribution station in the Kondopoga district. In addition, consideration was given to gasification prospects in southern regions of the Republic.

A working meeting was held today at the Gazprom headquarters between Alexey Miller, Chairman of the Company’s Management Committee and Alexander Berdnikov, Head of the Republic of Altai, Chairman of the Altai Republic Government.

Alexey Miller and Alexander Berdnikov

The parties discussed the progress with the Agreement of Cooperation between Gazprom and the Altai Republic Government. It was noted that intensive regional gasification took place last year. Inter-settlement and gas distribution pipelines were constructed in Gorno-Altaisk and the settlement of Maima; 21 local boiler houses were converted to natural gas. This year, the households of these population centers will start to be connected to gas distribution networks.

It was noted at the meeting that Gazprom would continue investing in gasification of the Republic of Altai.

Astrakhan hosted today a working meeting between Alexander Ananenkov, Deputy Chairman of the Gazprom Management Committee and Alexander Zhilkin, Governor of the Astrakhan Oblast.

The parties reviewed the progress with the Agreement of Cooperation between Gazprom and the Astrakhan Oblast Government. Particular attention was paid to the Astrakhan gas complex operation, further gasification of the region and environmental measures taken by Gazprom’s subsidiaries working in the Oblast.

Led by Alexander Ananenkov, Deputy Chairman of the Gazprom Management Committee the Company’s experts took a business trip to the Astrakhan Oblast.

A group of experts visited the key facilities of the Astrakhan gas complex: the Astrakhan gas and condensate field (GCF) and the gas processing plant (GPP).

At Astrakhan gas processing plant (center – Alexander Ananenkov)

Having visited the facilities, Alexander Ananenkov held in Astrakhan a meeting dedicated to the future development of the Astrakhan gas complex. The meeting brought together representatives from Gazprom, Gazprom dobycha Astrakhan, Gazprom invest Yug, Gazprom export, Gazprom sera, Gazpromtrans, Gazprom podzemremont Orenburg, Gazprom bureniye, Gazprom razvitiye, Gazenergoset, Gazprom VNIIGAZ, YuzhNIIgiprogaz, NIPIgazpererabotka, Oil and Gas Research Institute under the Russian Academy of Sciences, and Gazprombank.

In his opening speech Alexander Ananenkov stressed that gas processing was directly related to ensuring reliable gas supplies to consumers. As the Cenomanian deposits are nearing depletion and Gazprom is penetrating new hard-to-access reservoirs with natural gas containing a lot of valuable components, the gas processing sector will gain more significance and transform into a major factor of Russia’s gas industry development.  

Alexander Ananenkov emphasized that the Astrakhan gas complex was a significant production facility of Gazprom. The complex possesses a vast resource base (gas reserves in the Astrakhan GCF are estimated at 2.4 trillion cubic meters) and embraces the entire process chain of hydrocarbons recovery and processing, turnout of the whole range of products. Therefore, the Company is facing the task to assure steady development of the gas complex over a long-term period.

The meeting participants addressed the issues of gas and gas condensate production in the Astrakhan GCF, as well as maintenance and development of the field’s well stock. A priority is given here to the introduction of advanced technical and technological solutions during wells construction, operation and repair in order to raise their reliability and productivity, as well as to reduce costs and to make the timeframe of construction and repair activities shorter.

It was underlined that application of domestically manufactured import-substituting equipment was an inalienable part of this strategy. Over the recent years Gazprom’s experts, Russia’s leading research institutions and industrial enterprises joined their efforts to arrange production of various types of well equipment that can adequately compete with foreign counterparts. The range of the import-substituting products in use is constantly expanding – development and testing of domestically manufactured hydrogen sulfide-resistant flowlines and tubing are in progress.

The meeting addressed the progress with reconstructing the GPP. Alexander Ananenkov underlined the importance of a comprehensive approach to retrofitting and developing the entire Astrakhan gas complex including production and processing facilities, as well as the need to elaborate the relevant long-term program.

It was highlighted that the Astrakhan gas complex was the major sulfur producer in Russia (74 per cent). The participants discussed the current status of and development prospects for the global and domestic sulfur markets, as well as alternative sulfur utilization technologies, for instance, in road building. Consideration was given to the ways of constructing sulfur storages, both aboveground and underground. The meeting also addressed new types of products in the Astrakhan gas complex.

Sulfur pelletizer

Based on the meeting results, Gazprom’s specialized subdivisions and subsidiaries were entrusted with the tasks aimed at more efficient operation and development of the Astrakhan gas complex.

The exhibition of Russian art ‘Holy Russia’ started today in the Louvre in the presence of President of Russia Dmitry Medvedev and President of France Nicolas Sarkozy. Gazprom, GDF SUEZ and Total became primary sponsors of this cultural event, celebrating the Year of Russia in France.

Among the exhibits there are more than four hundred works of art from 24 of the largest Russian museums and libraries. It is the first time such a large collection of masterpieces of the medieval Russian art has been gathered in a single exhibition. Among the exhibits of the ‘Holy Russia’ there are rare fragments of fresco paintings, icons, coins, first portraits of the Russian tsars, unique manuscripts and books. The exhibited articles date back to periods from the ancient times to the epoch of Peter the Great (9th to 18th centuries) and tell us about the beginnings of Russian art, ancient archaeological cultures of Eastern Europe and their Byzantine origins.

The exhibition, recognized to be the most large-scale cultural event of the Year of Russia in France, will be held until May 24, 2010. Featured lectures, conferences and colloquiums on Russian art will be held in the Louvre during this period. Visitors will also be invited to concerts of Russian classical music, film representations of theatrical performances and retrospectives of Russian films.

Today in Paris, in the presence of Gazprom Management Committee Chairman Alexey Miller, GDF SUEZ Chairman and CEO Gérard Mestrallet and GDF SUEZ Vice-Chairman and President Jean-François Cirelli, Gazprom and GDF SUEZ celebrated the 35th anniversary of natural gas supplies from Russia to France.

“35 years ago the first contracts to supply Russia's natural gas to Gaz de France were signed. Since that time, Russian-French cooperation in the energy sector has rested on a firm will of the parties to build strong, long-term relationship and to develop a partnership based on respect for the balance of interests of suppliers and consumers. As a result, France has been among the five largest buyers of Russian gas for a number of years now and our interaction is not limited to gas supplies any more – it also includes such areas as energy saving, construction and operation of underground gas storage facilities, LNG sales, scientific and technical cooperation, advanced training of specialists. The illustrious cultural and sports projects implemented by Gazprom and GDF SUEZ deserve special attention.

We are confident that the development of our partnership will not slow down – this has been proven by the signing of the Memorandum on additional supplies of Russian natural gas and on the Nord Stream project. Participation of GDF SUEZ in the construction of this gas pipeline confirms its importance for ensuring sustainable energy supply to Europe. Vast experience in joint implementation of energy projects and a creative approach to new challenges give Gazprom and GDF SUEZ every right to call our collaboration the benchmark for energy partnerships,” said Alexey Miller.  

“Thirty five years ago France signed the first natural gas supply contract with Russia. Since then, strong ties have emerged between our two countries owing to the unique and efficient collaboration between Gazprom and GDF SUEZ. Our companies have always been sharing views on the gas industry development, the views that ultimately allowed us to develop the necessary infrastructure to ensure Europe’s energy security of supply. Gazprom and GDF SUEZ reinforced their collaboration with the announcement of GDF SUEZ’ participation in the Nord Stream project and the negotiations for additional volumes of long-term natural gas supply. Jean-François Cirelli and myself believe in the strategic importance of partnerships that link both of our companies. This trustful and fruitful relationship with Gazprom allows France and Europe to guarantee their energy security over the long run.

Beyond industrial interests, our Groups have always known how to develop cooperation in the cultural domain, in arts and sports. GDF SUEZ is proud to be the partner of the ‘Holy Russia’ exhibition to be inaugurated in Louvre tonight,” said Gérard Mestrallet.

Today in Paris and in the presence of President of Russia Dmitry Medvedev and President of France Nicolas Sarkozy Gazprom Management Committee Chairman Alexey Miller and GDF SUEZ Chairman and Chief Executive Officer Gérard Mestrallet signed a Memorandum on additional supplies of Russian natural gas and on the entry of GDF SUEZ into the
Nord Stream project.

Signing Memorandum with regard to additional gas supplies to GDF SUEZ and Nord Stream project

The document specifies that the parties have started discussions about supplying to GDF SUEZ up to 1.5 billion cubic meters of additional gas per year from 2015. The supplies will be fulfilled via the Nord Stream.

Alexey Miller and Gérard Mestrallet also expressed their satisfaction with the progress made to finalize the deal under which GDF SUEZ will become a shareholder of Nord Stream AG with a share of 9 per cent in its capital before the start of the gas pipeline construction.

“The Nord Stream is a strategically important pipeline for Europe. The value of the project is difficult to overestimate, as it will be an additional guarantor of energy security for millions of consumers and give them confidence in the future. The Nord Stream is a good example of an offshore gas pipeline complying with stringent international environmental requirements. It has recently received the last approval needed to begin construction this April. Together with our counterparts from GDF SUEZ, we believe that the Nord Stream will not merely strengthen cooperation between our companies, but will also help develop the energy sector of the entire continent and be another factor in the success of the long-term Russian-French partnership in the gas industry,” said Alexey Miller.

“In the framework of Cross Year 2010, the year of Russia in France and of France in Russia, the agreement with Gazprom, our long-term Russian partner and the largest gas producer in the world, illustrates the high-quality relationship developed over the years. Furthermore, GDF SUEZ regards with high consideration this major industrial partnership with Gazprom. By entering Nord Stream AG and increasing its gas purchase from Russia, GDF SUEZ aims at contributing to Europe’s security of supply including North West Europe where the Group is one the major power producers and holds a large portfolio of final power and gas customers,” declared Gérard Mestrallet.

The Gazprom headquarters hosted a meeting moderated by Alexander Ananenkov, Deputy Chairman of the Gazprom Management Committee, and dedicated to the Company’s geological exploration activities.

Taking part in the meeting were heads and experts from Gazprom’s specialized subdivisions and subsidiaries: Gazprom bureniye, Gazprom VNIIGAZ, Gazprom dobycha Krasnoyarsk, Gazprom zarubezhneftegaz, Gazprom neft shelf, Gazprom promgaz, Gazflot, Georesurs and Gazprom EP International B.V.

The meeting participants addressed various aspects of the Geological Exploration Program implementation over 2010 to 2012. Particular attention was paid to the mineral and raw material base development in Eastern Siberia and the Far East. Specifically, the discussion centered on the progress with and the prospects for geological exploration in the Krasnoyarsk Krai.

It was noted that expansion of Gazprom’s operations geography and of the subsurface licenses portfolio brought about the challenge of streamlining the interaction methods with subsidiaries when implementing geological exploration projects. In addition, the meeting considered the proposals by Gazprom neft shelf and Gazprom zarubezhneftegaz relevant to improving geological exploration activities at Gazprom’s licensed blocks in Russia and abroad.

The meeting participants also discussed interaction issues with exploration contractors: bidding procedures for exploration service providers, awarding of contracts, implementation control, assuring synergy among the contracting companies performing geological exploration.

Alexander Ananenkov, Deputy Chairman of the Gazprom Management Committee held at the Company’s headquarters a meeting dedicated to the natural gas balance shaping until 2030.

The meeting was comprised of Oleg Aksyutin, Member of the Management Committee – Head of the Gas Transportation, Underground Storage and Utilization Department of Gazprom, heads and experts from specialized subdivisions of the Company’s Administration.

The meeting participants were informed on the analysis of material factors influencing the projected long-term gas balance indicators. Particular attention was paid to gradual recovery of gas demand on the domestic and foreign markets after the global financial and economic crisis. Consideration was also given to the information on the global trends of liquefied natural gas consumption and the issues of the Eastern Gas Program implementation.

Gazprom reported its consolidated interim condensed financial results under the International Financial Reporting Standards (IFRS) for nine months ended 30 September 2009.

The Board of Directors of Gazprom resolved to convene the Company’s annual General Shareholders Meeting on June 25, 2010 in Moscow.

The Board of Directors of Shtokman Development AG approved the way forward on the Shtokman project. Initially, the final investment decision (FID) on pipeline gas is projected to be taken in March 2011, and the FID on LNG production – before the end of 2011.

Gazprom discovered a new gas field within the Abakan area in the Krasnoyarsk Krai. Russia’s first coalbed methane (CBM) production facility was launched in the Taldinskoye field, Kemerovo Oblast.

Gazprom and SAP AG signed the Corporate License Agreement. The Gazprom delegation took part in the Baltic Sea Action Summit in Helsinki.

The group of Gazprom's experts led by Alexander Ananenkov, Deputy Chairman of the Company's Management Committee, has finished its trip to the Far Eastern regions.

Today in Khabarovsk, Alexander Ananenkov held a meeting to address the progress with constructing the Sakhalin – Khabarovsk – Vladivostok gas transmission system (GTS), as well as the issues of Gazprom's resource base development offshore the Sakhalin Island.

Alexander Ananenkov

Taking part in the meeting were heads and experts from Gazprom's specialized subdivisions, subsidiaries and contracting companies.

The meeting participants emphasized the strategic importance of the Sakhalin – Khabarovsk GTS as the key component of the gas supply and gasification advancement in Russia's Far East. By now, 395 kilometers of the gas pipeline have been welded. Russian companies supplied 597 kilometers of pipes. 11 sections of the GTS are being constructed simultaneously. 4,096 workers and around 1,400 units of heavy-duty equipment are engaged in the trunkline construction. In parallel with the GTS construction, inter-settlement gas pipelines are being built and consumers are being prepared to receive gas in the Primorsky, Khabarovsk Krais and Sakhalin Oblast.

The meeting addressed the progress with developing the Sakhalin III project blocks. In particular, it was pointed out that in 2009, according to the results of the exploratory well drilling, ABC1+C2 gas reserves of the Kirinskoye field had been increased threefold – up to 100 billion cubic meters.

In 2010 geological exploration will be continued: it is projected to drill an exploratory well in the Kirinskoye field and a prospecting well in the Kirinsky block.  Based on the meeting results, Gazprom's specialized subdivisions, subsidiaries and contracting companies were tasked to ensure timely execution of the Sakhalin – Khabarovsk – Vladivostok GTS project and to further expand the Company’s resource base in Sakhalin.

Led by Alexander Ananenkov, Deputy Chairman of the Gazprom Management Committee, the Company’s experts started their business trip to Far Eastern regions.

Previously, a group of experts had visited construction facilities of the Sobolevo – Petropavlovsk-Kamchatsky gas trunkline, as well as pre-development and drilling facilities of the Kshukskoye and Nizhne-Kvakchikskoye fields.

Gazprom’s specialists visit construction facilities of Sobolevo – Petropavlovsk-Kamchatsky gas trunkline, as well as pre-development and drilling facilities of Kshukskoye and Nizhne-Kvakchikskoye fields (Alexander Ananenkov – center)

Today in Petropavlovsk-Kamchatsky Alexander Ananenkov held a meeting on the implementation of the Gas Supply to the Kamchatka Oblast, Phase 1 – Gas Supply to Petropavlovsk-Kamchatsky investment project and development of the Zapadno-Kamchatsky block.

Taking part in the meeting were Sergey Pakhomov, Deputy Chairman of the Kamchatka Krai Government, heads and experts from Gazprom’s specialized subdivisions, subsidiaries and contracting companies.

Alexander Ananenkov

Alexander Ananenkov emphasized that timely implementation of the investment project for gas supply to the Kamchatka Krai was of great socio-economic significance.

It was noted that the project was carried out in compliance with the schedule. So far, out of the required 392 kilometers of the Sobolevo – Petropavlovsk-Kamchatsky pipeline’s linear part, 364 kilometers have been constructed. Pre-development of the Kshukskoye and Nizhne-Kvakchikskoye fields is underway, production drilling has been completed. In parallel with gas supply and gasification facilities construction, the regional consumers are getting ready for gas supplies.

Execution of the investment project for gas supply to the Kamchatka Oblast is nearing completion. In this respect, the decision has been taken to reinforce the construction monitoring for the facilities that are directly responsible for gas supply within the prescribed timeframe. The task force set up by Gazprom for gas projects delivery in Kamchatka was made responsible for monitoring.

At construction site

Gazprom is consecutively expanding its resource base for the purpose of meeting the Kamchatka Krai’s demand for natural gas over a long period. In 2010 the Company is going to launch geological exploration in the Zapadno-Kamchatsky block located offshore the Sea of Okhotsk. As soon as in 2011 Gazprom will drill two exploratory wells in the block that will lay the foundation for hydrocarbons deposits discovery and reserves estimation.

Based on the meeting results, Gazprom’s specialized subdivisions and subsidiaries were entrusted with the tasks aimed at timely implementation of the projects for arranging gas supply and at expansion of gas production and transportation capacities on the Kamchatka Peninsula.