At its regular meeting the Gazprom Management Committee took notice of the major 2002-2006 implementation results of the Gas Industry’s Mineral Resource Base Development up to 2030 Program.

The Management Committee tasked Gazprom’s core business units and subsidiaries with:

• Adjusting the Program with due account of the Company’s 10 year Development Program details and in accordance with the Gazprom Planning Rules embracing strategic performance indicators;
• Continuing the work to obtain subsoil use licenses;
• Continuing the work to improve the Gazprom mineral resource base management system.

In order to achieve the geological exploration targets set forth in the Program the Management Committee to the decision to enhance the efficiency of wells construction and drilling capacity development.

The Management Committee underscored that the Program execution during 2002-2006 had resulted in a 2.6 btce increase (128 per cent versus the plan) of reserves.

The Management Committee also examined the Company’s readiness for the upcoming annual General Shareholders Meeting.

Reference:

The Program for the Gas Industry’s Mineral Resource Base Development up to 2030 was developed and approved by the Gazprom Management Committee in 2002. The Program identifies the major directions of Gazprom’s geological exploration and licensing policy.

While implementing the Program between 2002 and 2006, Gazprom discovered 19 new fields and 40 new oil and gas reservoirs.

In 2005 an aggregate prospecting driven increase in Gazprom’s hydrocarbon reserves was 607.8 mtce including 581.9 bcm of gas and 25.9 mln t of liquid hydrocarbons.

In 2006 an aggregate prospecting driven increase in Gazprom’s hydrocarbon reserves exceeded an annual extraction level and amounted to 610.8 mtce including 587.7 bcm of gas and 23.1 mln t of liquid hydrocarbons. The reserve replenishment coefficient grew to 1.06.

According to an independent appraisal as at December 31, 2006, the current value of Gazprom’s proven and probable hydrocarbon reserves increased USD 43.9 bln on 2005 to USD 182.5 bln.