The Gazprom Management Committee reviewed subsidiary performance over the autumn/winter 2006-2007 heating season.

As it was emphasized, during the reporting period Gazprom’s subsidiaries had secured sustainable and reliable gas deliveries to Russian and foreign consumers. The meeting pointed to the precise and coherent actions of all the structural units and subsidiaries of Gazprom when supplying gas to consumers.

During the autumn/winter 2006-2007 (October-March) period Gazprom produced 293 bcm of gas, 1.2 bcm down on the same period in 2005-2006. Due to the abnormally high temperatures over the past autumn/winter season, 32.4 bcm of gas was withdrawn from Russia’s UGS facilities, some 16 bcm down on the same period in 2005-2006, with considerable UGS reserves resulting unutilized.

To ensure reliable & uninterrupted operation of the Unified Gas Supply System within the autumn/winter 2007-2008 period the Management Committee tasked the Company’s core business units with:

• developing and submitting for the Management Committee Chairman’s approval the Major Guidelines on Subsidiary Infrastructure Preparation for Operation during the Autumn/Winter Season 2007-2008;
• providing:
  - scheduled preventive maintenance;
  - stockpiling 63.5 bcm of commercial gas reserves at Russia’s UGS facilities by the start of the next autumn/winter period

Gazprom’s subsidiaries were entrusted with:

• fulfilling reconstruction, overhaul and diagnostics plans & programs for gas production, transmission, underground storage and processing facilities in 2007;
• timely implementing the Major Guidelines on Subsidiary Infrastructure Preparation for Operation during the Autumn/Winter Season 2007-2008;
• ensuring the preparation of transportation vehicles and specialized equipment for operation during the autumn/winter 2006-2007 season;
• taking actions with regard to duly equipping in 2007-2008 crucial construction sites in strict compliance with supply schedules so as to meet construction launch deadlines.

Reference:

The existing gas production rates have been achieved largely due to the full capacity operation of the Pestsovoye, Yety-Purovskoye fields, Aneryakhinskaya area of the Yamburgskoye field, increased gas retrievals from the Zapolyarnoye field as well as through investment mechanisms enabling to commission a gas treatment unit UKPG-9 in the Kharvutinskaya area of the Yamburgskoye field and hook 178 field gas wells.

In 2006 Gazprom completed 16 scheduled preventive maintenance and repair actions at gas transportation facilities. Versus 2005, gas pipeline accidents reduced 24 per cent, with in-line inspection performed in full and 18.6 thousand km of pipelines examined.

The potential daily send-out of UGS facilities grew by the season startup from 568 to 600 mln cu m. The past period was characterized by considerable fluctuations of gas consumption, with daily send-out repeatedly changing within a wide 13.3-455.9 mln cu m bracket, which points to the UGS operation control flexibility and operational readiness for an extremely disproportional regime.

In 2007 the Company plans to launch a gas pre-treatment unit UPPG-10 at the Kharvutinsky dome of the Yamburgskoye field, a comprehensive gas treatment unit UKPG on the Yuzhno-Russkoye field, an UPPG on the Gubkinskoye field, phase 1 of a booster station on the Mylzhinskoye field, phase 2 of a UKPG booster station on the Yubileynoye field as well as 213 development wells.