Today Alexander Ananenkov, Deputy Chairman of the Gazprom Management Committee moderated at the Company’s headquarters a meeting of the Gazprom Gas Industry Commission for Field Development and Subsurface Use. The meeting addressed the development plan for the Chayanda field in the Republic of Sakha (Yakutia). The field serves as the basis for shaping the Yakutia gas production center within the Eastern Gas Program.

The Commission was composed of Vsevolod Cherepanov, Member of the Management Committee, Head of the Gas, Gas Condensate and Oil Production Department, members of the Commission – heads and experts from Gazprom’s specialized subdivisions, Gazprom VNIIGAZ, Gazprom promgaz and Oil and Gas Research Institute, RAS.

It was noted at the meeting that the development plan was completed. It describes various development options including the most optimal one. All the options provide for applying the most efficient technical solutions with due consideration of the field’s geological structure and the complex composition of natural gas containing, inter alia, helium.

The Commission approved the development plan for the Chayanda field. The plan will be then submitted to the Central Commission for Hydrocarbon Fields Development under the Federal Subsurface Use Agency.

Based on the meeting results, the Company’s specialized subdivisions and subsidiary companies were tasked to finalize the development plan adjustment and ensure timely execution of the Chayanda field development project.

Background:

The September 3, 2007 Order by the Russian 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 identified by the Russian Government as the Program execution coordinator.

New gas production centers will be established in Eastern Russia: the Krasnoyarsk, Irkutsk, Yakutia, Kamchatka and Sakhalin centers.

Gazprom is active in setting up the Yakutia gas production center based on the Chayanda field.

Pursuant to the Russian Federation Government Directive of April 16, 2008 Gazprom, as the owner of the Unified Gas Supply System, became the Chayanda oil, gas and condensate field operator. The Chayanda field is located in the Lensk District, Republic of Sakha (Yakutia). The field’s C1+C2 reserves make up 1.24 trillion cubic meters of gas and 68.4 million tons of oil and condensate (recoverable).

By now, engineering, geological and geodetic studies have been performed, exploratory wells are being drilled, seismic survey is completed, and the retrieved data is being processed and interpreted.

It is projected to bring the Chayanda field oil rim into development in 2014 and the gas deposits – in 2016. In order to ensure the extracted gas transmission, Gazprom is planning to start the Yakutia – Khabarovsk – Vladivostok gas transmission system (GTS) construction upon completion of the first stage of the Sakhalin – Khabarovsk – Vladivostok GTS.

Involvement of all regional gas resources will be essential for efficient development of the Yakutia gas production center and optimal loading of the Yakutia – Khabarovsk – Vladivostok GTS (at least 30 billion cubic meters of gas per year). Therefore, the Federal subsurface Use Agency was requested to grant Gazprom the subsurface use rights for the Srednetyungskoye, Tas-Yuryakhskoye, Sobolokh-Nedzhelinskoye and Verkhnevilyuchanskoye fields listed as the fields of federal significance.