An ordinary meeting of Gazprom’s Board of Directors is taking place in the Company’s Headquarters.

The Board of Directors took into account information on the Management Committee’s work being done to introduce project financing while implementing the corporate investment policy.

The Management Committee received instructions to develop the Main Principles of project financing-based implementation of investment projects, to be submitted afterwards for the Board of Directors’ consideration.

Reference:

Gazprom identified a handful of pilot hydrocarbon production, transmission and processing projects to be implemented through a project financing scheme. The implementation of each project will be put under control of a Steering Committee set up for this purpose.

In the gas, gas condensate and oil production sector, Gazprom identified the following field sections not included into short- and medium-term corporate development programs: a play of the Achimov deposits of the Urengoiskoye gas condensate field, the Nydinskaya area of the Medvezhye field and the Philippovskaya and Srednekamennougolnaya deposits of the Orenburgskoye gas condensate field.

In the gas transmission sector, project financing principles are being applied to the construction of the North-European gas pipeline.

In the gas processing sector, the Company addressed the Project on the completion of the construction of the Novy Urengoi Gas Chemical Integrated Company. The implementation of this Project is being regarded upon as resolution of the Gazprom’s “problematic” asset issue.

Applying project financing will allow Gazprom to pinpoint funding of investment projects, enhance control over project implementation and viability assessment, share risks with other parties involved in the project and make larger investments into programs without increasing the Company’s debt burden.

Based on the experience of pilot project development, Gazprom will devise a clear scheme of project financing activities, in particular, will elaborate and ratify criteria for the selection, initiation and preparation of projects.

In addition, the Company will identify main challenges and limitations to be faced while applying project financing to the implementation of projects, basic procedures and methodologies to be used for the assessment of investment projects viability and regulations of interaction between Gazprom’s departments and structural units.

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