Today, at the Gazprom Headquarters, Alexey Miller, Chairman of the Gazprom Management Committee conducted a meeting on the organizational issues of Gazprom’s participation in Sakhalin-2 project. Attending the meeting were heads and specialists of the company’s core business units.

The participants discussed the progress with implementing the Protocol on Gazprom’s joining Sakhalin Energy Investment Company Ltd.

The meeting discussed issues relevant to Sakhalin Energy’s handling of Sakhalin-2 related environmental violations by the regulatory requirements.

The meeting also examined the organizational issues in compliance with the opening of a Gazprom’s Representative Office set up in the Sakhalin region.

Reference:

On December 21, 2006, Gazprom, Royal Dutch Shell plc, Mitsui & Co., Ltd. (Mitsui) and Mitsubishi Corporation signed the Protocol on Gazprom’s joining Sakhalin Energy Investment Company Ltd. (Sakhalin-2 project operator) as the main shareholder.

In pursuance with the terms set in the Protocol, Gazprom will purchase 50 per cent plus one share in Sakhalin Energy for $ 7.45 bln. Each of the existing Sakhalin Energy shareholders will decrease its stake by 50 per cent at the proportional payment distribution aimed at making the deal. As a result, Shell will own a 27.5 per cent stake, and Mitsui and Mitsubishi - 12.5 per cent and 10 per cent of shares, respectively.

The Coordinating Committee was set up in pursuance of the January 30, 2007 Order of the Gazprom Management Committee Chairman Alexey Miller to implement the Gazprom Sakhalin Island Offshore Development Strategy endorsed by the Board of Directors in 2006. Along with other responsibilities, the Coordinating Committee will coordinate Gazprom’s joining Sakhalin Energy Investment Company Ltd. as its main shareholder. The first meeting of the Coordination Committee was held on February 9, 2007.

On February 22, 2007 the Management Committee considered it expedient to set up Gazprom’s Representative Office in the Sakhalin Oblast. The issue for the representative office set up will be examined by the Board of Directors.

On February 28, 2007 Gazprom’s Board of Directors approved the deals as regards Gazprom’s joining Sakhalin Energy Investment Company Ltd (Sakhalin Energy) as the leading shareholder.