A working meeting between Alexey Miller, Chairman of the Gazprom Management Committee and Peter Voser, newly-appointed Chief Executive Officer of Royal Dutch Shell took place today as part of the 8th International Investment Forum “Sochi-2009”.

The parties discussed the progress with the Sakhalin II project, noted the successful launch of this world-scale project and the outstripping pace of oil and LNG production and delivery. Specifically, it is expected that in 2009 LNG production rates will exceed the initially projected ones.

The meeting participants addressed the opportunity to expand operations offshore Sakhalin within the 2007 Area of Mutual Interest Agreement between the shareholders of Sakhalin Energy. A decision was taken to shape a working group that would study the entire set of issues related to Sakhalin’s fields development.

Background:

Royal Dutch Shell is a British-Dutch petroleum company dealing with hydrocarbon production and processing in more than 40 countries around the world.

On April 18, 2007 Gazprom and the shareholders of Sakhalin Energy (Royal Dutch Shell plc, Mitsui & Co. Ltd and Mitsubishi Corporation), being the Sakhalin II project operator, signed the Purchase and Sale Agreement providing for the acquisition by Gazprom of a 50 per cent plus one share stake in Sakhalin Energy.

In addition, the Area of Mutual Interest Agreement was signed embracing opportunities for wider cooperation between Sakhalin Energy’s shareholders offshore Sakhalin.

In early 2009 the first Russian LNG plant was commissioned as part of the project and Russian LNG exports started. The plant will reach its nominal capacity (9.6 million tons per annum) in 2010.