Alexander Ananenkov, Deputy Chairman of the Gazprom Management Committee held a meeting at the Company’s Headquarters dedicated to Gazprom’s resource base development in the Far East.

Taking part in the meeting were Oleg Aksyutin, Member of the Management Committee-Head of the Gas Transportation, Underground Storage and Utilization Department, heads and experts from Gazprom’s specialized subdivisions, Gazprom invest Vostok, Gazprom neft shelf, Gazprom dobycha Noyabrsk, Gazprom VNIIGAZ and VNIPIgazdobycha.

It was noted that resources of the Sakhalin and Yakutia gas production centers will play the key role in the Far Eastern industry, the arrangement of gas supplies to the regional population, as well as natural gas exports to Asia-Pacific countries.

In this respect the meeting participants addressed the progress with the Yakutia gas production center formation that would be based on the Chayanda field resources. Development of the Chayanda oil rim and gas deposit will be launched in 2014 and 2016 respectively. In order to convey the produced gas, it is projected to construct the Yakutia – Khabarovsk – Vladivostok gas trunkline. Gazprom will start the construction upon completion of the first phase of the Sakhalin – Khabarovsk – Vladivostok gas transmission system.

The meeting considered preparation activities for the Chayanda field development. Particular attention was paid to speeding up the transportation infrastructure formation required to procure construction materials and equipment.

Based on the meeting results Gazprom’s specialized subdivisions and subsidiaries were engaged with the tasks aimed at further development of the Company’s resource base in the Far East and ensuring timely execution of the Chayanda field development project.

Background:

The September 2007 Order by the Russian Federation Industry and Energy Ministry approved the Development Program for an integrated gas production, transportation and supply system in Eastern Siberia and the Far East, taking into account potential gas exports to China and other Asia-Pacific countries (Eastern Gas Program). Gazprom was appointed by the Russian Federation Government as the Program execution coordinator.

Pursuant to the Program it is projected to construct new gas production centers in Eastern Russia: Krasnoyarsk, Irkutsk, Yakutia, Kamchatka and Sakhalin.

Gazprom is active in shaping the Yakutia gas production center based on the Chayanda field reserves. The gas production forecast was updated based on the new data obtained during operations at the Chayanda oil and gas condensate field.

Therefore, Gazprom requested the Russian Federation Government to additionally grant Gazprom the subsurface rights for the Srednetyungskoye, Tas-Yuryakhskoye, Sobolokh-Nedzhelinskoye and Verkhnevilyuchanskoye fields located in Yakutia.

In accordance with the Russian Federation Government Directive of April 16, 2008 Gazprom, as the owner of the Unified Gas Supply System, was entitled to the subsurface license for the Chayanda oil and gas condensate field.

The Chayanda oil and gas condensate field is located in the Lensky district of the Republic of Sakha (Yakutia). The C1+C2 reserves of the field account for 1.24 trillion cubic meters of gas and 68.4 million tons of oil and condensate.

At present, two exploration wells are being drilled in the field and preparations have been initiated for 2D and 3D seismic surveying to be performed during the 2009 winter period. The geodetic and geotechnical studies have been finished. In 2010 the Reservoir Management Plan for the Chayanda oil and gas field will be fully prepared.