Today, Gazprom’s Headquarters has hosted a regular session of Gazprom’s Management Committee. The Management Committee heard a report on the major results achieved between 2002 and 2005 during the implementation of the Program for the gas industry’s mineral resource base development up to 2030.

The Management Committee tasked Gazprom’s core business units with preparing proposals on the creation of a specialized subsidiary to operate as a geological exploration customer.

Appropriate departments were entrusted with continuing the work with federal executive and legislative bodies to improve the regulatory framework in the subsurface use sector.

The Management Committee pointed to a significant increase in the number of Gazprom’s international projects and their growth prospects in future. Gazprom’s presence in international markets is in line with the Company’s strategic goals of converting into a global energy leader.

The Management Committee tasked Gazprom’s core business units with preparing proposals on further strengthening of the Company’s mineral resource base abroad.

Reference:

The Program for the gas industry’s mineral resource base development up to 2030 was developed and approved by the Gazprom Management Committee in 2002. The Program identifies the major directions of Gazprom’s geological exploration and licensing policy. A Management Committee’s decision prescribes annually updating the Program subject to the Management Committee’s review.

Program implementation stages:

• 2002-2005 – boosting geological exploration and achieving the parity between hydrocarbon withdrawals and build-ups;
• 2006-2010 – stabilizing exploration volumes and setting the stage for the transfer to expanded replenishment of reserves;
• 2011-2030 – expanded replenishment of the mineral resource base.

Between 2002 and 2005 prospecting activities have been performed in the following regions:

• northern Taz Peninsula with the Ob and Taz Bays;
• Nadym-Pur-Taz Region;
• Astrakhan Anticline and Precaspian Depression fringe;
• Northwest Region including the Barents Sea;
• Krasnodar Territory and Republic of Dagestan;
• Eastern Siberia (Krasnoyarsk Territory and Irkutsk Region).

Additionally, Gazprom prospects for hydrocarbon fields in Vietnam, India, Venezuela and Uzbekistan, with geological and economic assessments provided for prospects in Tajikistan, Kirgizia, Libya, Egypt, Algeria, Argentina, Iran, Nigeria and other countries.

While implementing the Program between 2002 and 2005 Gazprom has discovered 16 fields and 24 oil & gas deposits, with hydrocarbon reserves build-up averaging 2 btce including more than 1.8 tcm of gas. The reserve replenishment coefficient grew from 0.32 in 2001 to 1.06 in 2005. Prospecting expenses from 2002 to 2005 totaled RUR 41 bln.

As at December 31, 2005, the Gazprom Group have controlled 29.1 tcm of gas reserves and 2,573.8 mln t of liquid hydrocarbons (including Gazpromneft).

As at year-end 2005, Gazprom has performed independent audit of 95 per cent of gas, 90 per cent of condensate and 90 per cent of oil A+B+C1 reserves (excluding Gazpromneft). As a result, the proven and probable gas, condensate and oil reserves accounted for 20.7 tcm, 692.7 mln t and 299.5 mln t, respectively. The reserves are currently valued at US$ 138.6 bln.