Today, Gazprom’s delegation headed by Alexey Miller, the Company’s Management Committee Chairman, paid a working visit to Turkmenistan. Alexander Ryazanov and Yuri Komarov, Deputy Chairmen of Gazprom’s Management Committee and Alexander Medvedev, Gazexport’s Director General also arrived in the city of Ashgabat as members of the Russian delegation.

In the course of the business trip, Alexey Miller met Saparmurat Niyazov, President of the Republic of Turkmenistan.

The parties discussed issues related to implementing the Agreement on Cooperation in the Gas Industry and the Contract on Gas Deliveries to Russia, adopted within the frames of the above-mentioned Agreement. As it was pointed out during the meeting, cooperation was keeping up a rapid pace and mutual agreements were being abided by in full.

Starting 2004, Gazprom purchased over 1.1 bcm of gas in Turkmenistan. Gas volumes targeted for this year are expected to be supplied in full. Gazprom, in its turn, also fulfils all its obligations on transiting Turkmen gas. A Gazprom branch has started operating in Turkmenistan.

The meeting discussed the progress in the pre-project planning and pre-investment study conducted within the Program on upgrading, expanding and constructing new facilities of the Central Asia – Center gas transmission system. An accord was reached to speed up producing a General Substantiation of Investments to be made into this system.

A. Miller and S. Niyazov agreed that Gazprom would participate in exploring the fields (including gas and oil ones) located on the Turkmen shelf of the Caspian Sea. The aforementioned Agreement allowed for such an opportunity and now Gazprom has received a respective proposal. A Joint Commission (to be represented by the governmental officials on the part of Turkmenistan) will focus on the details of cooperation in this sector.

As A. Miller said at the end of the meeting, "in autumn this year Gazprom and Turkmenistan were holding a Conference in Moscow to examine information on the progress in and prospects for bilateral cooperation in the oil and gas sector."

Reference:

Russia and Turkmenistan signed the 25-year Agreement on Cooperation in the Gas Industry on 10 April 2003. Within the Agreement, Gazexport, a Gazprom 100% subsidiary, and Turkmenneftegaz concluded a long-term Contract on the Turkmen Natural Gas Sales, valid until the expiration of the Agreement.

Under the Contract, Gazexport will purchase 5-6 bcm of gas from Turkmenneftegaz in 2004. Russia is expected to receive some 10 bcm of Turkmen gas in 2006 and up to 60-70 bcm, in 2007. Starting 2009, Russia is to annually receive about 70-80 bcm of Turkmen gas.

Turkmenistan produces some 55 bcm of gas per annum, including 10-12 bcm used domestically and the rest are exported.

The Turkmen gas deliveries are carried out via the Central Asia – Center transit gas pipeline system going through Uzbekistan, Kazakhstan and Russia. Under the Intergovernmental Agreement concluded, Gazprom provides the Turkmen gas transit via Russia to Ukraine. In addition, the Company serves as operator in transiting Turkmen gas through Uzbekistan and Kazakhstan.

DIVISION OF RELATIONS WITH MASS MEDIA