Gazprom has acquired a 100% stake of Irkutskgazprom from Vostokgazprom.

Irkutskgazprom, a Gazprom vanguard in the Irkutsk region, will be tasked with implementing Gazprom’s local projects, hydrocarbon field localization, exploration and development projects inclusive.

Gazprom’s buying into a 100% stake of Irkutskgazprom, founding Krasnoyarskgazdobycha to implement gas projects in the Krasnoyarsk area and inviting Krasnoyarskgazprom to develop Gazprom’s gas extraction projects is a consistent policy targeted at the corporate business development in eastern Russia.

Reference:

Under the RF Government’s Directive dated 16 July 2002, the RF Industry and Energy Ministry in conjunction with Gazprom is involved in the development of the Program on setting up an integrated gas production, transmission and supply network in Eastern Siberia and the Far East, taking into account potential gas exports to China and other Asian Pacific countries. Being currently at its final updating phase and pending endorsement, the Program will foster the initiation of comprehensive large-scale natural gas extraction and transmission projects, gas deliveries to eastern Russia and integrated national policy of natural gas exports to Asia Pacific.

In November 2003, Gazprom’s Board of Directors approved the corporate business development in the Irkutsk & Sakhalin regions and Krasnoyarsk & Khabarovsk areas (including involvement in subsurface use licensing contests and auctions, geological exploration, hydrocarbon field development and viable domestic gas supply projects) as a major business in eastern Russia.

In February 2004, Gazprom and the Irkutsk region sealed a five-year Cooperation Agreement.

The Agreement stipulates cooperation deepening in the following major businesses:

• putting into life the national Program on setting up an integrated gas production, transmission and supply network in Eastern Siberia and the Far East, taking into account potential gas exports to Asia Pacific;
• coming up with a program on the comprehensive hydrocarbon field operation and gas pipeline network development in the Irkutsk region;
• implementing hydrocarbon field localization, exploration & development and feedstock processing projects in the Irkutsk region; constructing gas and condensate pipelines to ship hydrocarbon feedstock and its processing products to regional consumers and the United Gas Transmission System;
• developing gas supply projects in the Irkutsk region, taking into consideration the investment viability for the gas supply infrastructure construction, gas demand and solvent customers.

Under the Agreement, Gazprom is finalizing a General Scheme of gas deliveries to the Irkutsk region and is striving to maintain a consistent approach to meeting this challenge along with contributing to the natural gas share growth in the regional fuel and energy basket.

Gazprom owns two subsoil use licenses in the Irkutsk region for the geological exploration of the East and West plays in the South Kovykta area.

Incorporated in April 1999, Vostokgazprom is a Gazprom 99.98% subsidiary. Irkutskgazprom was founded in October 2000 as a Vostokgazprom 100% business outlet.

The Gazprom’s buying into the 100% ordinary registered stock of Irkutskgazprom transaction was endorsed by Gazprom’s Board of Directors in 2004.

The Irkutsk region’s forecast gas and oil & condensate resources exceed 5 tcm and 2 bln t, respectively.

DIVISION OF RELATIONS WITH MASS MEDIA