At its today ordinary meeting Gazprom’s Management Committee has heard a report on the major progress in the Gas Industry’s Natural Resource Base Development to 2030 Program implemented between 2002 and 2004.

The Management Committee tasked Gazprom’s core business units with developing the Guidelines for Gazprom’s involvement in tenders to obtain the subsoil use and licensing financing rights.

The Management Committee also authorized respective outlets to provide the top management with the updated Gas Industry’s Natural Resource Base Development to 2030 Program due before 1 September 2005.

Reference:

Developed and endorsed by the Management Committee in 2002, the Gas Industry’s Natural Resource Base Development to 2030 Program identifies major directions of Gazprom’s geological prospecting and licensing policy. The Management Committee has adopted a resolution to update and scrutinize the Program on an annual basis.

Program implementation stages:

· Over 2002 to 2005 - Expanding geological exploration and achieving equilibrium between hydrocarbon withdrawal amount and build-up;

· Between 2006 and 2010 - Buoying up the geological exploration scope and establishing an environment to switch over to expanded production;

· From 2011 through 2030 - Intensifying the natural resource exploitation.

While implementing the Program between 2002 and 2004, Gazprom discovered 13 oil & gas fields and deposits, with the hydrocarbon reserve build-up averaging 1.4 btoe (including over 1.3 tcm of gas) and replenishment coefficient growing from 0.32 in 2001 to 0.69 in 2004.

The corporate licensing activities over 2002 to 2004 allowed Gazprom to increase gas reserves by 184 bcm.

Gazprom and its wholly-owned subsidiaries exercise control over 28.4 tcm of natural gas, 1.2 bln t of condensate and 0.6 bln t of oil reserves. As of 31 December 2004, 87% of gas, 90% of condensate and 72% of oil reserves were valued through an independent audit at $84 bln.

DIVISION OF RELATIONS WITH MASS MEDIA