As a result of geological exploration, Gazprom discovered a new field within the Mynginskaya geological structure in the Kirinsky prospect of the Sakhalin III project.

Gas and condensate inflow was reported in the prospecting well during the exploration operations. The well testing will be followed by the reserves estimation.

The new field was the second discovery in the Kirinsky prospect.

Background

Gazprom carries out geological exploration in the Sakhalin shelf as part of the state-run 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. The Program was approved by the September 2007 Order of the Russian Federation Industry and Energy Ministry. Gazprom was appointed by the Russian Federation Government as the Program execution coordinator.

Gazprom holds subsurface use licenses for the Kirinskoye field, the Kirinsky prospect (including Yuzhno-Kirinskoye field) and the Vostochno-Odoptinsky and Ayashsky licensed blocks within the Sakhalin III project. Natural gas produced by Gazprom within the project will be delivered into the Sakhalin – Khabarovsk – Vladivostok gas transmission system.

Based on the results of the geological exploration performed between 2009 and 2010, Gazprom increased the Kirinskoye gas and condensate field reserves from 75 billion cubic meters of C1+C2 gas to 137 billion cubic meters of C1 gas. The recoverable condensate reserves rose from 8.6 to 15.9 million tons. It is projected to commission the field in 2012.

In September 2010 Gazprom discovered the large Yuzhno-Kirinskoye field in the Kirinsky prospect. The field's C1+C2 gas reserves make up 260 billion cubic meters, the recoverable condensate reserves – 29.9 million tons.

Gazflot (a wholly-owned subsidiary of Gazprom) acts as the geological exploration operator.