Alexander Ryazanov, Deputy Chairman, Gazprom Management Committee, successfully completed negotiations with Abdusalom Azizov, Chairman of the Board, Uzbekneftegaz National Holding Company.

Following the negotiations, the parties initialed the mid-term Agreement on natural gas transportation via the Republic of Uzbekistan for 2006-2010. The Agreement will be signed in the near future.

The parties agreed to conclude an additional agreement on transit tariffs no later than 30 November 2005.

During the negotiations the parties reconfirmed their intention to reconcile the long term contract between Gazexport and Uztransgaz regarding Uzbekistan produced natural gas supplies, and to sign the contract no later than 30 November 2005.

Additionally, the Uzbek counterparts will prepare information concerning results of the Central Asia – Center gas transmission system diagnostics within Uzbekistan, as well as other relevant information necessary to carry out the technical feasibility study of the system’s overhaul. This information will be prepared for Gazprom.

Alexander Ryazanov stated: “The agreements reached during negotiations demonstrate our companies’ aspiration to develop mutually beneficial Russia – Uzbekistan cooperation in natural gas transportation and transit.”

Reference:

The Republic of Uzbekistan’s natural gas reserves total more than 6.25 trillion cubic meters, including 1.62 trillion cubic meters of commercial reserves. Uzbekistan currently produces 55 billion cubic meters of gas annually, including 5 billion cubic meters of gas for exports to Kazakhstan, Kirghizia and Tajikistan.

Uzbekistan produced gas supplies to Russia commenced in May 2003. Central Asian gas transit and supply contracts, and gas purchasing contract in the amount of 5 billion cubic meters of gas were signed in 2005.

The Strategic Cooperation Agreement between Gazprom and Uzbekneftegaz National Holding Company was signed on 17 December 2002. The Agreement, among other issues, stipulates long term purchases of natural gas produced in Uzbekistan for the period of 2003-2012, Gazprom’s participation in natural gas production projects in Uzbekistan which are based on production sharing agreement terms, and cooperation in developing Uzbekistan’s gas transportation infrastructure and Central Asian natural gas transit via Uzbekistan.

Cooperation with Uzbekistan in developing gas transmission capacities continues within the framework of the joint project of developing the Central Asia – Center gas transmission system. The project includes overhaul and expansion of the existing gas transportation facilities, and construction of new gas transmission infrastructure in Turkmenistan, Uzbekistan, Kazakhstan and Russia to facilitate Central Asian natural gas transmission via these countries in volumes defined by international agreements.

DIVISION OF RELATIONS WITH MASS MEDIA