Today, at Gazprom’s Headquarters, Alexey Miller, the Company’s Management Committee Chairman, and Boris Govorin, Governor of the Irkutsk Region signed a 5-year Cooperation Agreement.

Future cooperation will be based on the following principles:

• Priority and efficient gas deliveries to the Irkutsk Region, based on the local gas fields
• Uninterrupted gas supplies throughout the Russian Federation by expanding the United Gas Supply System (UGSS)
• Comprehensive implication of national objectives as well as of regional authorities and Gazprom’s interests

The Agreement envisages the parties’ cooperation in the following main directions:

• Implementation of the state-run Program for establishing a united East Siberian and Far Eastern gas production, transportation and supply system, with implication for possible gas exports to Asia Pacific
• Elaboration and implementation of the Irkutsk Region’s Program on comprehensive development of local hydrocarbon reserves and on gas transmission system development
• Elaboration and implementation of projects related to search, exploration and development of the Regional hydrocarbon reserves (the Kovytkinskoye oil and gas condensate field, inclusive), to gas and condensate pipeline construction for pumping hydrocarbon feedstock and its processing products to the Irkutsk Region and UGSS, and to hydrocarbon feedstock processing
• Implementation of projects on gas deliveries to the Irkutsk Region, given substantiation of investments to be channeled for the gas supply facilities construction and solvent demand for gas.

The Agreement determines the parties’ obligations in the sectors of taxation, pricing and social policies, capital construction, transport development, energy saving, ecological safety, rational nature management and information sharing.

The Agreement says that the Irkutsk Region’s Administration backs the Gazprom Group of companies in obtaining licenses to develop local natural resources and will assist the latter in doing so in the predetermined by the RF legislation order. In addition, the Irkutsk Region’s authorities will assist Gazprom in resolving issues on land-tenure and state registration of real estate rights.

The parties are to examine implementation of the Cooperation Agreement on a year-to-year basis.

Reference:

That is the 1st time Gazprom and the Irkutsk Region’s Administration sign a Cooperation Agreement. For the time being, Gazprom is not delivering gas to the Irkutsk Region.

Russia’s energy strategy for the period up to 2020 focuses on setting up and developing a new large Russian gas production center in East Siberia and the Far East. Under the RF Government’s order dated July 16, 2002, Gazprom was appointed coordinator in implementing the Program on the East Siberian and Far Eastern gas field development, in establishing a gas supply system in eastern Russia and in providing a united gas export channel to Asia Pacific.

DIVISION OF RELATIONS WITH MASS MEDIA