The Gazprom Headquarters hosted today a working meeting between Alexey Miller, Chairman of the Gazprom Management Committee and Kangsoo Choo, President of Kogas.

The parties discussed the prospects for further cooperation development in the oil and gas sector within the Memorandum of Understanding on natural gas supplies from Russia to Korea signed in September 2008. A focus of the meeting also fell on the progress with the investment rationale preparation for the project aimed at arranging Russian natural gas supplies to consumers of the Republic of Korea.

The parties also pointed to the favorable opportunities for cooperation in gas processing and gas chemicals within the Eastern Program.

Background:

On October 17, 2006 Seoul saw the signing of the Agreement of Cooperation in the Gas Industry between the Government of the Russian Federation and the Government of the Republic of Korea, pursuant to which Gazprom and Kogas were identified as authorized companies overseeing natural gas deliveries from Russia to the Republic of Korea. At present, Gazprom and Kogas are in the relevant commercial talks. The Agreement of Cooperation between Gazprom and Kogas was signed on May 12, 2003 and extended for an additional five-year term in May 2008.

The September 3, 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 Sakhalin – Khabarovsk – Vladivostok gas transmission system is a top priority project of the Eastern Gas Program.

On September 29, 2008 Gazprom and Kogas signed the Memorandum of Understanding on natural gas supplies from Russia to Korea.