Background

On September 11, 2000 Gazprom and Petrovietnam signed the contract that contemplated searching for, exploring, producing and marketing of hydrocarbons in block 112 offshore Vietnam. As a result of the geological exploration work performed in 2007, the Bao Wang gas and condensate field was discovered in the block.

In order to implement the contract, Gazprom and Petrovietnam established the Vietgazprom joint operating company (JOC), which is currently performing geological exploration on the continental shelf of the Socialist Republic of Vietnam.

In November 2006 Gazprom and Petrovietnam entered into the Agreement of Cooperation promoting, inter alia, interaction between the companies in hydrocarbons exploration, production, transportation and marketing, as well as construction and operation of oil and gas pipelines, and petroleum processing facilities.

In May 2008 Gazprom and Petrovietnam inked the Agreement for Further Cooperation. The Agreement provides for geological exploration and further development of four new blocks offshore Vietnam, as well as for incorporation of the Gazpromviet joint venture to run its business in Russia and third countries with the following shareholding structure: Gazprom – 51 per cent and Petrovietnam – 49 per cent.

In October 2008 Gazprom and Petrovietnam signed a 30-year Oil and Gas Contract for blocks 129, 130, 131, 132 on the continental shelf of the Republic of Vietnam. The document stipulates hydrocarbons exploration, development and production in these blocks. The Contract will be implemented on the production sharing terms. Vietgazprom will act as the project operator. At the geological exploration stage the project financing will be carried out by Gazprom. As part of the Contract, 2D seismic exploration and geochemical research operations were performed, the data obtained are under processing and interpretation.

On December 15, 2009 Gazprom and Petrovietnam entered into the Strategic Partnership Agreement.

Pursuant to the document, the parties will continue joint activities in the blocks of the Vietnamese continental shelf as part of the previously signed Oil and Gas Contracts and explore the possible ways of cooperation between the companies in free licensed blocks.

In addition, the Agreement provides for active interaction between Gazprom and Petrovietnam in oil and gas projects execution in Russia, Vietnam and third countries as part of the Gazpromviet joint venture being set up.

Background

The Cooperation Agreement was entered into between Gazprom and the Mari El Government in 2005 and extended in 2010. The Gasification Accord was signed in 2002.

In 2006–2008 Gazprom invested RUB 457 million in the Republic gasification.

Thus, RUB 220 million was earmarked to construct an inter-settlement gas pipeline in 2009. In its turn, the Government of the Republic sponsored construction of 18 kilometer long street networks, reconstruction of four boiler houses and preparation of 472 households for gas supply.

Owing to the Russian Regions Gasification Program being implemented by Gazprom, natural gas penetration in the Mari El Republic showed a 12.4 per cent increase within the period from 2006 to 2009, reaching 74 per cent as of January 1, 2010. The identical figure throughout Russia averages 63.2 per cent.

In 2010 Gazprom is to allocate RUB 152 million for the Mari El Republic gasification.

Background

The Adler CHPS has been included in the Program for the Olympic facilities construction and development of Sochi as a  mountain-climatic resort. The Adler CHPS is to be commissioned in 2012 according to the Olympic facilities construction schedule.

The Adler CHPS will be based on the 360 MW combined-cycle gas turbine plant (heating capacity – 227 Gcal/hr) comprising two power units with the overall efficiency of 52 per cent.

Each of the power units will consist of two 65.8 MW gas turbines manufactured by Italian Ansaldo Energia and one 62.8 MW steam turbine manufactured by Kaluga Turbine Plant.

The Adler CHPS will primarily run on natural gas as it is the most eco-friendly energy resource, which enables to preserve a  favorable environment. The modern combined-cycle technology provides high efficiency, low fuel consumption and a reduction in airborne pollutant emissions by 30  per cent on average versus conventional steam power plants. The engineering solutions and materials used during the project execution comply with the highest Russian and international environmental standards.

The Adler CHPS became one of the first Olympic energy facilities that passed the public hearings and obtained state and environmental approvals.

Mosenergo Fuel and Energy Company is the general contractor for the Adler CHPS construction. It is a design, construction and engineering complex that has a long-standing track record in delivering large power generation projects, practical skills in customizing foreign and domestic generating equipment, as well as expertise in the national and international rules and standards for construction and operation.

Background

The September 2007 Order by the Russian Federation Industry and Energy Ministry approved the Development Program for an integrated gas production, transportation and supply system in Eastern Siberia and the Far East, taking into account potential gas exports to China and other Asia-Pacific countries (Eastern Gas Program). Gazprom was appointed by the Russian Federation Government as the Program execution coordinator. New gas production centers will be created in Eastern Russia, namely, the Krasnoyarsk, Irkutsk, Yakutia, Kamchatka and Sakhalin centers.

In September 2007 the Russian Federation Government adopted the decision prescribing Gazprom to get involved in the Gasification of the Kamchatka Oblast. Phase 1 – Gas Supply to Petropavlovsk-Kamchatsky project.

As part of the project, Gazprom is engaged in production wells drilling and pre-development of the Kshukskoye and Nizhne-Kvakchikskoye fields on the western coast of the Kamchatka Peninsula. It is projected to annually produce a total of 750 million cubic meters of gas from these fields.

Background

The September 2007 Order by the Russian Federation Industry and Energy Ministry approved the state-run Development Program for an integrated gas production, transportation and supply system in Eastern Siberia and the Far East, taking into account potential gas exports to China and other Asia-Pacific countries (Eastern Gas Program). Gazprom was appointed by the Russian Federation Government as the Program execution coordinator. As part of the Program, new gas production centers will be created in Eastern Russia, namely, the Krasnoyarsk, Irkutsk, Yakutia, Kamchatka and Sakhalin centers.

In September 2007 the Russian Federation Government adopted the decision prescribing Gazprom to get involved in the Gasification of the Kamchatka Oblast. Phase 1 – Gas Supply to Petropavlovsk-Kamchatsky project.

The Sobolevo – Petropavlovsk-Kamchatsky gas trunkline stretches for 392 kilometers. It is planned to bring the gas pipeline onstream and to start gas supply to consumers in 2010.

Since 2009 the Kamchatka Krai has been involved in the Russian Regions Gasification Program. As part of the Program, Gazprom’s funds were used to construct a gas lateral from AGDS of Petropavlovsk-Kamchatsky to CHPP-2. On its part, the Kamchatka Krai Government is arranging CHPP-2 conversion to natural gas.

Background

The September 2007 Order by the Russian Federation Industry and Energy Ministry approved the Development Program for an integrated gas production, transportation and supply system in Eastern Siberia and the Far East, taking into account potential gas exports to China and other Asia-Pacific countries (Eastern Gas Program). Gazprom was appointed by the Russian Federation Government as the Program execution coordinator.

The Eastern Gas Program provides for prioritized creation and development of the Sakhalin – Khabarovsk – Vladivostok GTS to be subsequently connected with a gas pipeline running from the Republic of Sakha (Yakutia).

The GTS construction pursues the objective of developing gas supplies to the Khabarovsk Krai and the Sakhalin Oblast and arranging gas supplies to the Primorsky Krai. The gas trunkline construction was launched in July 2009, its first startup complex will be put into operation in the third quarter of 2011. Simultaneously, the work is underway to supply gas to the Sakhalin Oblast and convert the Yuzhno-Sakhalinsk CHPP-1 to natural gas.

The first startup complex of the GTS will be 1,350 kilometers long with the capacity of 6 billion cubic meters per annum. When the nominal capacity is reached, the system will be capable of conveying around 47.2 billion cubic meters of gas including some 30 billion cubic meters from Sakhalin fields.

Natural gas from the Sakhalin Island shelf and Yakutia’s fields will provide the key resource base for the Sakhalin – Khabarovsk – Vladivostok GTS development.

Background

Construction of the Pochinki – Gryazovets gas pipeline is aimed at raising the reliability and flexibility of Russia’s Unified Gas Supply System in the Northwestern and Central regions of the country. Initially, the gas pipeline will supply additional gas to the Northwestern region and, inter alia, convey gas to the Nord Stream gas pipeline. Further on, when natural gas deliveries from Yamal are started, the gas pipeline will be switched to reverse flow and gas will be rerouted to the Central region.

The Pochinki – Gryazovets gas pipeline will run across the Nizhny Novgorod, Vladimir, Ivanovo, Yaroslavl and Vologda Oblasts. The 1,420-millimeter pipeline will stretch for approximately 650 kilometers and operate at the pressure of 7.4 MPa. Its full throughput capacity will amount to 36 billion cubic meters per annum. The gas pipeline will embrace up to six compressor stations with the total capacity of 580 MW to be put onstream as necessary. The pipeline construction was launched in  September 2007. Some 300 kilometers have been laid so far.

The Gryazovets – Vyborg gas pipeline is intended for ensuring gas deliveries to the Nord Stream gas pipeline and supplying consumers in  Northwestern Russia.

Stretching for more than 900 kilometers, the gas pipeline passes through the Leningrad and Vologda Oblasts of the Russian Federation. By now, over 600 kilometers of the pipeline’s linear part have been put onstream. The linear part is to be completed in late 2010.

The gas pipeline will be commissioned in a stagewise manner starting from 2011. It is  projected to achieve the nominal capacity (55 billion cubic meters of gas per year) by late 2012.

The Gryazovets gas transmission hub ensures natural gas conveyance from the Nadym-Pur-Taz region (Western Siberia) to consumers in Northwestern Russia, as well as gas delivery to the Yamal – Europe gas pipeline. The Gryazovetskaya CS is a key facility of the Gryazovets gas transmission hub. The work is in progress to increase the CS capacity from 264 to 389 MW.

Underway is the Urengoy gas transmission hub expansion and the Northern Tyumen Regions (SRTO) – Torzhok gas trunkline construction in order to assure the withdrawal of additional gas volumes from the Nadym-Pur-Taz region.

The gas pipeline length is 2,200 kilometers, its annual design capacity varies from 20.5 to 28.5 billion cubic meters at different sections. The gas pipeline will comprise 13 CS. Its completion is scheduled for 2011.

In order to deliver gas from the Bovanenkovo field, it is necessary to build a  2,451-kilometer gas transmission system including the new Bovanenkovo – Ukhta gas transmission corridor. The corridor’s length will amount to some 1,100 kilometers, the projected capacity – 140 billion cubic meters per annum. The Bovanenkovo – Ukhta gas trunkline system is scheduled for commissioning in the third quarter of 2012.

The Portovaya CS is located on the Russian coast of the Baltic Sea in the Portovaya Bay. The CS will have the capacity of 366 MW and the working pressure of 220 Ata. Advanced equipment and modern technologies will be used for the CS construction. The station will carry gas 1,200 kilometers via the Nord Stream offshore gas pipeline and no extra compressor stations will be built on the German coast. The first-stage compressor capacities at the Portovaya CS are planned for commissioning in 2011. By late 2012 the CS will reach its projected capacity.

Background

With its scarce domestic energy resources, Japan is the world’s fourth largest energy consumer. The country annually consumes some 80 billion cubic meters of gas. The share of gas in the Japanese energy mix is currently equal to 14 per cent and it is likely to grow. 100 per cent of imported gas is delivered in the form of LNG making Japan the world’s top LNG importer.

Gazprom and the Natural Resources and Energy Agency under the Economy, Trade and Industry Ministry of Japan signed the Framework Agreement of Cooperation on November 21, 2005. The Agreement sets forth the key areas of bilateral cooperation in the gas sector. The Joint Coordinating Committee (JCC) was established to implement the Agreement. The Committee held its first meeting in January 2007. The Committee comprises a Joint Working Group.

On December 12, 2008 Gazprom signed two Agreements with Itochu Corporation and Japan’s Natural Resources and Energy Agency to elaborate a joint investment rationale for the gas processing plant/gas chemical complex construction project based on the feedstock from the Sobinskoye field.

On May 12, 2009 Gazprom signed the Memorandum of Understanding with Japan’s Natural Resources and Energy Agency to jointly prepare a preliminary research on creating facilities for liquefied/compressed natural gas production near Vladivostok.

The September 3, 2007 Order by the Russian Industry and Energy Ministry approved the Development Program for an integrated gas production, transportation and supply system in Eastern Siberia and the Far East, taking into account potential gas exports to China and other Asia-Pacific countries (Eastern Gas Program). Gazprom was identified by the Russian Government as the Program execution coordinator.

Background

Gazprom komplektatsiya is a centralized supplier of Gazprom’s subsidiaries. The company’s primary objective is to ensure timely and complete procurement of high-quality materials and equipment to Gazprom and its subsidiaries. Gazprom komplektatsiya is responsible for more than 80 per cent of the materials and equipment required by Gazprom.

Established on March 22, 1995 Gazprom avia Aviation Company is a fully-owned subsidiary of Gazprom.

Gazprom avia is focused on transportation of shift teams from European Russia to Western Siberia and the Far North being the key regions of gas production, transmission and processing, as well as on gas pipelines monitoring.

Sukhoi Civil Aircraft Company (SCAC) was set up in 2000 to create new models of civil aircraft. The company’s shareholding is split between Sukhoi Company (75 per cent minus one share) and Italian Alenia Aeronautica (25 per cent plus one share).

SCAC’s major project is targeted at creating Sukhoi Superjet 100 aircraft, a family of Russian regional jets. On October 24, 2008 after successful completion of factory-based flight testing, the aircraft joined the flight certification campaign.

Sukhoi Superjet 100/95 LR is designed to carry 95 passengers up to 4,420 kilometers. Its length equals 29.94 meters, height – 10.28 meters and wingspan – 27.8 meters.

Background

IR Magazine Russia & CIS is the first and the only Russian-language periodical highlighting the IR theory and practice. The Magazine has been giving awards since 2008.

Thomson Reuters is one of the world’s leading sources of business information. The agency holds regular IR surveys and identifies the best experts in this field. The surveys are based on polling of experts from European and Russian asset management companies.

Background

The Audit Committee under the Gazprom Board of Directors is basically focused on assessing:

• nominations for Gazprom's auditor;
• the auditor's report;
• the effectiveness of Gazprom's internal control procedures and elaboration of proposals on their improvement.

The Audit Committee Members were elected pursuant to the provisions of the guidelines for the appropriate Committee of the Board of Directors. The authority of the Committee Members expires simultaneously with the expiry of the authority of the Board of Directors that had formed this Committee. Therefore, the authority of the previously elected Committee Members expired on June 25, 2010.

The annual General Shareholders Meeting of June 25, 2010 approved ZAO PricewaterhouseCoopers Audit as Gazprom’s auditor for 2010. The company was announced the winner of an open competitive procedure held by Gazprom in accordance with the Federal Law on Audit Activities.

Background

In January 2010 Russian President Dmitry Medvedev gave the assignments aimed at developing the innovative activities and raising the technological level in companies with state participation.

In accordance with the said assignments Gazprom is getting ready for creating the corporate Innovative Development Program – a document designed for managing and planning the innovative activities over the long term. The Program will contain a comprehensive list of technical, economic, financial and organizational measures to satisfy gazprom’s demand for modern equipment, machinery and technologies.

The Program will cover the entire innovative cycle from an engineering solution development to its industrial application, connect all elements of the Company’s organizational and financial mechanisms related to various stages of the innovative process, as well as regulate the interaction of the parties involved.

Gazprom will elaborate the corporate investment programs and R&D programs with due consideration of the Innovative Development Program.

Background

On June 18, 2010 Gazprom and NOVATEK signed the Agreement of Cooperation determining the major interaction parameters in implementing the project for LNG facilities construction based on the Yuzhno-Tambeyskoye field, as well as the infrastructure creation and subsequent utilization on the Yamal Peninsula. Yamal LNG, a subsidiary of Novatek holds the subsurface use license for the Yuzhno-Tambeyskoye field.

Gazprom export and Yamal LNG signed the long-term Agency Agreement stipulating LNG exports from the Yuzhno-Tambeyskoye field.

The State of Qatar is the world’s third largest country in terms of natural gas reserves after Russia and Iran. The country’s proven reserves account for 25.8 trillion cubic meters. Indigenous gas production in Qatar is increasing rapidly: from 5.8 billion cubic meters in 1988 to the present 77 billion cubic meters. All natural gas in Qatar is produced from the North field located on the continental shelf close to the Iranian border. Qatar annually exports 56.8 billion cubic meters of natural gas. The bulk of gas is exported as LNG (around 39.6 billion cubic meters). The country has 5 operating projects on LNG production and another 2 projects are nearing completion. The aggregate annual capacity of LNG plants accounted for 84.3 billion cubic meters by late 2009. Qatar Petroleum is the state monopoly in the oil and gas sector of Qatar.