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GAZPROM

February 2, 2006

On session of Gazprom’s Regional Policy Commission

Alexander Ryazanov, Deputy Chairman of Gazprom’s Management Committee has convened a session of the Regional Policy Commission.

The participants heard a report by Promgaz on the preparation of a Program on expanded gas supplies to the Irkutsk Region. The Commission advised that Gazprom’s respective business units prepare proposals for the implementation of a Contract on gas infrastructure construction & gas supply between the Irkutsk Region and Gazprom and report on those at a Commission’s meeting in the second half of 2006.

The meeting summarized the results of the Commission’s work in 2005 and approved its business plan for 2006.

Reference:

Gazprom and the Irkutsk Region’s authorities sealed an Agreement on cooperation in February 2004.

In pursuance of the Agreement, Promgaz developed a General Scheme of gas infrastructure construction in & gas deliveries to the Irkutsk Region through a consistent scientific analysis of Siberia’s economy and energy market development prospects.

The General Scheme implies a comprehensive approach to providing sustainable energy supplies, forming an optimum fuel & energy basket and maintaining energy security in the Region, with small and medium fields to be preferentially used at an initial stage for gas supplies to eight districts.

Upon endorsement of the General Scheme by the Irkutsk Region’s authorities, the parties signed on 16 December 2005 a Contract on gas infrastructure construction in & gas supply to the Region, which encompasses the development of a several stage Program on gas supply.

So far, Gazprom has discovered 11 hydrocarbon fields in the Irkutsk Region, with proved gas reserves and initial total gas resources accounting for 2.27 tcm and over 11 tcm, respectively.

Gazprom is proprietor of two land use licenses in the Region and is involved through its wholly owned subsidiary Irkutskgazprom in geological exploration of the Eastern and Western plays of the South Kovykta area.

A Gazprom subsidiary, Promgaz is one of the Company’s leading research centers. Promgaz specializes in developing comprehensive regional energy projects and energy conservation programs, general schemes and investment projects for gas supply to the RF constituents, small-sized oil & gas field development projects and coal-bed methane extraction projects.

 

 

 

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