Meetings of the Gazprom Board of Directors have taken place in absentia.

The Board of Directors heard a report on the Gazprom preliminary operating highlights over 2006, and the Investment Program, Budget (Financial Plan) and Cost Optimization (Reduction) Program Projections through 2008-2009.

The Board of Directors endorsed the Investment Program, Budget (Financial Plan) and Cost Optimization (Reduction) Program for 2007.

The Gazprom Investment Program, Budget (Financial Plan) and Cost Optimization (Reduction) Program over 2006 are anticipated to be executed strictly in line with the preset targets.

Under the Investment Program for 2007, total investments are earmarked at RUR 529.38 bln including RUR 360.56 bln as capital investments and RUR 168.82 bln as long-term financial investments.

Under the Investment Program through 2008-2009, total investments will make up RUR 623.73 bln and RUR 702.95 bln, respectively, with capital investments projected at RUR 513.8 bln and RUR 580.2 bln, respectively and long-term financial investments projected at RUR 109.93 bln and RUR 122.75 bln, respectively.

Under the Budget for 2007 and Budget Projections through 2008-2009, overall cash income & revenues will make up RUR 2,566 trln, RUR 2,561 trln and RUR 2,615 trln, respectively; liabilities, expenditures and investments will account for RUR 2,656 trln, RUR 2,689 trln, RUR 2,857 trln, respectively; financial borrowings will annually be RUR 90 bln through 2007-2009.

The meetings also addressed other issues falling under the authority of the Gazprom Board of Directors.

Reference:

The Gazprom Investment Program covers the most promising investment projects.

The major gas production projects are as follows: constructing infrastructure for the Kharvutinskaya area of the Yamburgskoye field (RUR 25.7 bln), the Bovanenkovskoye and Kharasaveyskoye fields (aggregate RUR 26.2 bln), developing the Yuzhno-Russkoye field (RUR 21.25 bln) and developing the Shtokman and Prirazlomnoye fields (RUR 17.1 bln and RUR 11.13 bln, respectively). Facility construction will continue on the Yen-Yakhinskoye, Urengoyskoye, Zapolyarnoye and other fields.

The major gas transmission projects are: constructing the Northern Tyumen Oblast - Torzhok gas pipeline (RUR 17.43 bln), expanding the Urengoy gas transmission hub (RUR 16.5 bln), with RUR 26.78 bln earmarked to expand northwestern Russia’s gas transmission network, including to secure gas supply via the Nord Stream gas pipeline. RUR 12.4 bln and RUR 46.23 bln are earmarked to build gas branch pipelines and gas distribution stations and to upgrade gas transmission facilities, respectively.

Capital investments will also be channeled to reconstruct primary gas production facilities, technically reequip underground gas storage facilities, carry out engineering & design and geological exploration and conduct production drilling in fields.

On the whole, the plans for 2007 include putting into operation 1001.64 km of gas mains and branches, 5 gas pipeline and UGS facility compressor stations and a comprehensive gas treatment unit, hooking 139 production gas wells, a production oil well and 35 UGS wells.

The long-term financial investments plan for 2007 contemplates financing upstream projects abroad (in the Republics of Tadzhikistan and Kyrgyzstan, Block 112 of the Republic of Vietnam, India’s Bengal Bay and the Ustyurt region of the Republic of Uzbekistan).

Additionally, the plan embraces granting long-term loans to Gazprom’s subsidiaries operating on the Yuzhno-Russkoye field, in the Krasnoyarsk Krai, Venezuela and the Caspian Sea offshore.