Today, Gazpromís Management Committee has reviewed information on the progress in the implementation of a plan of measures aimed at enhancing the intra-corporate governance structure.
The Management Committee considered it expedient to found the following specialized limited liability subsidiaries:
- Gazpromneftedobycha (will integrate oil and condensate production);
- Gazprom-UGS (underground gas storage capacities);
- Gazprompererabotka (gas and liquid hydrocarbon processing);
- Gazpromtsentrpodzemremont (capital and underground repairs of wells at UGS facilities);
- Gazpromseverpodzemremont and Gazpromyugpodzemremont (capital and underground repairs of wells at gas, condensate and oil fields of West Siberia and southern Russia);
- Gazpromavtogaz (automated gas fuelling compressor stations).
Said issue is pending approval by Gazpromís Board of Directors.
In addition, the Management Committee endorsed liquidating non-core businesses within gas production and transmission subsidiaries and transferring respective assets to specialized subsidiaries under formation. In particular:
- underground gas storage assets will be handed over to Gazprom-UGS;
- well repair assets pertinent to gas production and transmission subsidiaries, to Gazpromseverpodzemremont and Gazpromyugpodzemremont, and Gazpromtsentrpodzemremont, respectively;
- gas production assets, from transmission to production subsidiaries;
- gas transmission assets, from production to transmission subsidiaries;
- compressor station repair assets, to the Tsentrenergogaz subsidiary;
- communications assets, to Gazsvyaz;
- motor vehicle assets (upon refurbishment of emergency repairs subsidiaries), to specialized companies.
Welfare, utility, agricultural and other facilities are subject to singling out, as well.
Gazpromís intra-corporate governance structure is being improved within the 2nd stage of the Companyís restructuring aimed at the enhancement of Gazpromís business efficiency as a vertically integrated company and optimization of the subsidiariesí core businesses.
The structural changes are expected to end up with the full unbundling of financial flows in the gas & liquid hydrocarbon production, transmission, processing, underground storage and marketing sectors.
Along with consolidating its core businesses, Gazprom intends to have independent repair & maintenance units, distribution networks and social facilities.
Said reforms will allow the Company to achieve bigger transparency of gas production, transmission and marketing expenses.
Consolidating the core businesses will enhance the entire Gazprom Groupís operating efficiency and governance quality.
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