Today at Gazprom’s Headquarters Alexey Miller, Ghairman of Gazprom’s Management Committee and Alexander Filipenko, Governor and Chairman of the Government of the Khanty-Mansi Autonomous Area-Yugra (KhMAA) have sealed a Cooperation Agreement.

Under the Agreement, the parties will keep on implementing joint top priority businesses encompassing hydrocarbon production, associated gas processing & oil and gas refining, reliable gas supply to KhMAA’s consumers and socially significant programs & projects.

KhMAA’s authorities are committed to timely paying off gas deliveries and adjusting retail gas prices to the changes in state-regulated wholesale gas prices as well as regulating its land relations with Gazprom in pursuance of existing legislation.

Additionally the authorities will render support for Gazprom’s investment business in KhMAA.

Gazprom in its turn will provide reliable natural gas supply to the Area, take part in local socioeconomic development programs and finance together with KhMAA’s Government welfare infrastructure construction.

The Agreement also outlines a range of measures targeted at providing additional safety & security for the United Gas Transmission System, eliminating emergencies and preventing third-party access to exclusion zones.

Reference:

Interaction between Gazprom and the Khanty-Mansi Autonomous Area-Yugra (KhMAA) hinges on the October 2001 five-year Cooperation Agreement and similar agreements sealed on an annual basis.

Last year Gazprom furnished KhMAA’s consumers with over 480 mln m? of gas. As of 1 October 2005 natural gas supply to the Area exceeded 370 mln m?.

KhMAA has no natural gas debt. As of 1 October 2005, gas deliveries to the Area have been paid up at an average of 101.5 per cent.

KhMAA’s natural gas infrastructure is developed by 22 per cent of maximum demand, including by 31 per cent in cities, towns & localities and 13 per cent in rural area (the identical Russia-averaged parameters account for 53, 60 and 34.7 per cent, respectively).

In its investment programs for KhMAA over 2003 to 2005, Gazprom allocated RUR 53 mln for the construction of a high-pressure gas lateral and automated gas distribution station in the settlement of Aghirish. Both of the facilities were brought on-line in October 2005.