From left to right: Alexander Filipenko, Chairman of the Government of the Khanty-Mansi Autonomous Area (KhMAA) - Yugra and Alexey Miller, Gazprom’s Management Committee Chairman

Today, at Gazprom’s Headquarters, Alexey Miller, Gazprom’s Management Committee Chairman and Alexander Filipenko, Chairman of the Government of the Khanty-Mansi Autonomous Area (KhMAA) - Yugra entered into a Cooperation Agreement for 2004.

The parties pointed out that the KhMAA and Gazprom would interact based on annual cooperation agreements. At the same time, tha parties deliberated on an Agreement adopted today between the authorities of the KhMAA, Yamal-Nenets Autonomous Area and Tyumen Region.

Under the Agreement signed today, Gazprom and the KhMAA will promote cooperation in following main directions:

- Developing the KhMAA’s hydrocarbon extraction potential;

- Intensifying gas consumption in municipalities;

- Processing associated petroleum gas and developing petroleum and gas chemistry;

- Implementing investment projects;

- Capital construction, including social infrastructure;

- Conveying title to social and housing facilities to the KhMAA’s municipal bodies and settling land tenure issues.

Gazprom and the KhMAA will contribute to enhancing the efficiency of local natural resources exploitation. In accordance with the Agreement, the KhMAA will review the issue of assisting Gazprom in developing small gas fields with the view of ensuring returns and providing secure gas deliveries to the KhMAA’s localities. The KhMAA will also focus on repaying part of Gazprom’s expenses arisen while overhauling and eliminating decrepit exploration wells.

Gazprom, in its turn, will provide together with its subsidiaries Surgutgazprom and Tyumentransgaz secure natural gas shipments to the KhMAA, will take part in the implementation of the KhMAA social and economic development programs and will finance on a par with the KhMAA’s Government the construction of social infrastructure in the region. At the same time, Gazprom will consider potential introduction of energy saving projects to be implemented within the Program on energy saving in the KhMAA up to 2005.

Reference:

Gazprom and the Khanty-Mansi Autonomous Area (KhMAA) build cooperation based on annually adopted agreements.

Last year, Surgutgazprom and Tyumentransgaz timely earmarked more than RUR 3.5 billion in tax payments to the KhMAA’s consolidated budget.

As of 1 July 2004, Gazprom fully settled its tax debt to the KhMAA.

In the meantime, Gazprom is constructing and financing a handful of facilities in the KhMAA, including housing and social infrastructure.

Gazprom’s subsidiaries are implementing the Program on dilapidated housing demolition. In 2003, Tyumentransgaz constructed some 22 thousand m? of living quarters.

DIVISION OF RELATIONS WITH MASS MEDIA