Today in Petropavlovsk-Kamchatsky Alexander Ananenkov, Deputy Chairman of the Gazprom Management Committee held a meeting dedicated to Gazprom’s resource base expansion onshore and offshore the Kamchatka Peninsula.

Participating in the meeting were heads and experts from Gazprom’s specialized subdivisions and subsidiaries: Gazprom invest Vostok, Gazprom dobycha shelf, Gazflot, Gazprom promgaz, Gazprom gaznadzor and contracting agencies.

Opening the meeting, Alexander Ananenkov emphasized that Gazprom’s resource base expansion was a prerequisite for developing the regional gas supply system alongside the construction of gas transmission facilities.

The meeting addressed pre-development of the Kshukskoye and Nizhne-Kvakchikskoye fields located on Kamchatka’s west coast. It was stressed that the pre-development operations were progressing according to schedule. Production wells drilling is underway; the second phase of the comprehensive gas treatment unit (CGTU) installation that will convey gas from the Nizhne-Kvakchikskoye field is nearing completion.

Speaking of Kamchatka’s resource base development in the long run, the meeting participants highlighted the Peninsula’s offshore area as the most promising in this regard. Gazprom is planning to produce in this area up to 20 billion cubic meters of gas per annum.

As a result of preparations and engineering activities in the Zapadno-Kamchatsky license block, seismic survey was performed over the area of some 7 thousand linear kilometers between January and September 2010. The 2010 plan envisages surveying 8 thousand kilometers. In 2011 shaping of Gazprom’s geological exploration program for Kamchatka’s offshore area will be finally shaped with due consideration for the seismic survey done and drilling of prospecting and exploration wells will be initiated.

Following the meeting results, Gazprom’s specialized subdivisions were given the appropriate tasks.

Background:

The September 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. New gas production centers will be created in Eastern Russia, namely, the Krasnoyarsk, Irkutsk, Yakutia, Kamchatka and Sakhalin centers.

In September 2007 the Russian Federation Government adopted the decision prescribing Gazprom to get involved in the Gasification of the Kamchatka Oblast, Phase 1 – Gas Supply to Petropavlovsk-Kamchatsky project.

As part of the project, Gazprom is engaged in production wells drilling and pre-development of the Kshukskoye and Nizhne-Kvakchikskoye fields on the west coast of the Kamchatka Peninsula. It is projected to annually produce a total of 750 million cubic meters of gas from these fields.