Gazprom decided to set up Gazprom pererabotka, Gazprom pererabotka-Surgut and Gazprom pererabotka-Urengoy in the frames of enhancing the Gazprom intra-corporate management structure at the second stage of the reform.

The companies had been spun out Severgazprom, Surgutgazprom and Urengoygazprom, accordingly.

Later on Gazprom’s gas and liquid hydrocarbon processing assets will be consolidated within Gazprom pererabotka that will be a prominent and crucial specialized company of Gazprom. Thus, Gazprom will successfully meet the challenge of enhancing its operational efficiency as a top-down integrated company and optimizing the core business management structure at subsidiary level. Yury Vazhenin was named Director General of Gazprom pereraboka-Surgut and Gazprom pererabotka-Urengoy. Igor Ivanov was appointed Director General Surgutgazprom.

Yury Vazhenin was born in the town of Plyavinyas of the Latvian Soviet Socialist Republic. In 1976 Yu. Vazhenin graduated from the Riga Polytechnic Institute obtaining a Candidate of Technical Sciences degree in Thermal and Energy Process Automation. Over 1994 to 2006 - Director General, OOO SurgutGazprom subsidiary of RAO Gazprom (since 1999 - Surgutgazprom, OAO Gazprom).

Igor Ivanov was born in the city of Murmansk. In 1979 I.Ivanov graduated from the Leningrad Lenin Order M.I. Kalinin Polytechnic Institute obtaining a Doctor of Technical Sciences degree in Turbine Construction. During 1994-2004 Chief Engineer - SurgutGazprom subsidiary of RAO Gazprom (since 1999 - Surgutgazprom, OAO Gazprom).

During 2004 - 2007 Chief Engineer - First Deputy Director General, Surgutgazprom, OAO Gazprom.

Reference:

On March 29, 2006, the Gazprom Board of Directors endorsed the initiatives to rearrange Gazprom’s wholly owned subsidiaries for the purpose of unbundling core business activities into specialized subsidiaries with Gazprom hundred per cent ownership: Gazprom UGS, Gazprom pererabotka, Gazprompodzemremont-North, Gazprompodzemremont-South, Gazpromtransgaz-Kuban as well as increasing Gazprom’s share in Gazpromtrans up to 100 per cent.

The financial resources distribution for construction, transmission, processing and underground gas storage and marketing of gas and LNG will be finalized in the result of structural changes provided by Gazprom.

The main principle to improve inter-corporate structure is to divide Gazprom’s multi-core enterprises and consolidate core business activities into specialized legal entities of service activities and social infrastructure.

The current reorganization scheme of subsidiaries is subdivided into two stages:

• Setting apart of activities and assets, i.e. the existing Gazprom subsidiaries (donor companies) transfer corresponding relevant assets to independent legal entities (buffer companies);
• Consolidation of specific activities and assets, i.e. “buffer” companies created at the previous stage are consolidated according to their fields of action by means of reorganization in the form of merger (one of the “buffer” companies is appointed the “main” one. All other “buffer” companies merger with it).

The work based on the said scheme has been started from creating the larger and more powerful specialized companies for Gazprom. At subsequent stages, the above-mentioned scheme can be applied to create specialized companies that will consolidate specific service activities within Gazprom (for instance, service to the customer, gas fueling stations, etc).