Members of the Russian Federation State Duma visited the Zapolyarnoye oil, gas and condensate field located in the Yamal-Nenets Autonomous Okrug.

Taking part in the trip were 15 heads and representatives of the State Duma's Energy Committee; Transport Committee; Natural Resources, Environmental Management and Ecology Committee; Property Committee; Ethnic Policy Committee and others.

Valery Golubev, Deputy Chairman of the Company's Management Committee addressed the State Duma members at the Gazprom headquarters, the starting point of the trip.

He told about the development strategy of Gazprom aiming to become a leader of the global energy market. Achieving this goal, the Company makes efforts on diversifying the production output, transportation routes and sales markets in order to provide the consumers with needed and reliable energy supplies.

Valery Golubev noted that the Russian gas market had been and still remained essential for Gazprom. The Company makes ongoing efforts on shaping new consumer markets as well as implements the large-scale Program on Gasification of Russian Regions. For the last seven years, from 2005 to 2011, Gazprom allocated more than RUB 146 billion for these purposes. As a result, gas has been conveyed to the citizens of more than 2,500 settlements. For these people, especially for the ones living in rural areas, this fact means the improvement of living standards and gives a huge impetus for socioeconomic development in the regions. In 2012 Gazprom is planning to allocate the record amount of more than RUB 29 billion for gasification purposes.

The taxes paid by Gazprom are of a major importance for Russian regions. Currently, the Company produces hydrocarbons in 12 constituents of the Russian Federation, Gazprom's gas transmission system runs through 63 regions, gas distribution network – through 68 regions, the Company's power generation facilities are located in 16 Russian constituents.

Gazprom actively arranges charity and sponsor events in the constituents of the Russian Federation. Gazprom for Children is the largest corporate social project that embraces 72 regions. As part of the program, sports complexes are built, different sports clubs are organized as well as festivals and competitions are held.

The meeting was focused on topical issues of improving the legislative basis for the gas business. It was noted that its well-timed development was directly linked with the future of the Russian gas industry. Taking into account the specific nature of the gas business, for instance, the long-term investment returns, it is a must to make certain decisions today.

In addition, the meeting participants discussed the legislative basis for exploring the Arctic shelf – for Russia it is a new area of hydrocarbons production. To date, Gazprom has plans to implement two large projects there – the Prirazlomnoye oil field and the Shtokman gas and condensate field development. It is also planned that the Prirazlomnoye filed will become a pilot project for hydrocarbons production in the Arctic area. The operations to launch the drilling of the first production well are currently in progress.

 “Considering that large-scale projects have not been implemented on the Russian Arctic shelf yet, it is important to pay special attention for creating favorable investment conditions to ensure the effective long-term development of the projects,” said Valery Golubev.

Following the meeting, the State Duma members visited the key production unit of Gazprom – the Central Operations and Dispatch Department.

Apart from the Zapolyarnoye field, the State Duma members visited some social and cultural venues built by Gazprom. Novy Urengoy hosted an off-site meeting of the State Duma Energy Committee. The parties addressed the issues surrounding the gas industry in the context of the Russian legislation.

Background

The Zapolyarnoye oil, gas and condensate field is located in the Yamal-Nenets Autonomous Okrug (YaNAO), 220 kilometers away from Novy Urengoy. The field is considered one of the largest in Russia, as its reserves account for 3 trillion cubic meters of gas. The field is being developed by Gazprom Dobycha Yamburg (a wholly-owned subsidiary of Gazprom).