The results of a Gazprom’s Board of Directors’ meeting held in absentia have been summed up.

The Board of Directors approved Gazpromneft’s involvement in the Yuganskneftegaz’s 76.79% stake sale tender, submission of a final binding bid and execution of the stake acquisition transaction.

At the same time, the Board approved Gazprom’s taking a loan and lending it to Gazpromneft for its participation in the tender on Yuganskneftegaz’s stake acquisition, with Gazprom’s 2004-2005 budgets to be amended appropriately.

Reference:

On 30 November 2004, Gazprom’s Management Committee reviewed the paperwork on the Company’s involvement in the Yuganskneftegaz’s 76.79% stake sale tender, presented by Gazpromneft and Deutsche Bank serving as advisor on Gazprom’s oil business strategic development, and approved Gazpromneft’s participation in said tender.

Gazpromneft was founded within the 2nd stage of Gazprom’s restructuring that stipulates the consolidation of the Company’s core businesses within independent legal entities.

Gazpromneft will be mainly focused on oil and gas condensate production, transmission and storage.

Under the RF Government’s Directive, the amount of Gazprom’s state-held shares will be increased to the controlling stake through Rosneft’s takeover by Gazprom, with the former company’s oil assets to be handed over to Gazpromneft.

In 2003, Gazprom extracted 11 mln t of oil and gas condensate, with 11.9 mln t of liquid hydrocarbons expected to be withdrawn in 2004.

Rosneft’s oil and gas condensate production accounted for 19.6 mln t in 2003, with 21.9 mln t slated for 2004.

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