At the Gazprom Headquarters Alexander Ananenkov, Acting Chairman of the Gazprom Management Committee moderated a meeting dedicated to Gazprom’s participation in the Sakhalin-2 project execution.

Attending the meeting were heads and specialists of the Company’s core business units.

The participants discussed the progress with implementing the project and activities necessary for timely commissioning of the project’s production capacities as well as the production and environmental security sector.

The meeting examined also organization issues on setting up a Gazprom’s Representative Office in the Sakhalin Oblast.

Reference:

The Sakhalin Shelf is a mostly explored water zone of the Far Eastern Seas. 9 hydrocarbon fields were discovered in this area containing gas, oil and gas condensate reserves in total amount of 1.2 tcm, 394.4 mln t and 88.5 mln t, respectively. The potential hydrocarbon reserves at the Sakhalin Shelf are estimated at more than 6 bln t coal equivalent.

The Program on Development of the Unified Production, Transportation and Supply System in Eastern Siberia and the Far East Due to Possible Gas Export to Chinese Markets and Other Asia Pacific Countries approved by the Russian Government on June 15, 2007 stipulates top-priority development of a large gas production center in Sakhalin.

On April 18, 2007 Gazprom and the shareholders of Sakhalin Energy including Royal Dutch Shell plc, Mitsui &Co. Ltd and Mitsubishi Corporation (being operator of the Sakhalin-2 project) signed a Purchase and Sale Agreement where Gazprom owns a 50 per cent stake plus 1 share.

On April 16, 2007 the Board of Directors considered it expedient to set up a Gazprom’s Representative Office in the Sakhalin Oblast.