The Gazprom Management Committee considered the information on the progress in developing Cenomanian-Aptian deposits of the Bovanenkovskoye oil and gas condensate field and constructing the Bovanenkovo – Ukhta gas trunkline system.

Gazkomplektimpex was tasked to supply the main process equipment and pipes scheduled for procurement in 2009.

The meeting noted that the Yamal megaproject was being implemented in full compliance with the respective schedules.

Background:

In January 2002 the Gazprom Management Committee identified the Yamal Peninsula as a region of the Company’s strategic interest. The commercial development of fields in Yamal will increase local gas production to 310-360 bcmpa by 2030. Accessing Yamal is of utter importance for the purpose of ensuring gas production growth in Russia.

11 gas and 15 oil, gas and condensate fields with approximately 16 tcm of explored and provisionally evaluated gas reserves (ABC1+C2) and nearly 22 tcm of in-place and forecast gas reserves (C3+D3) have been discovered on the Yamal Peninsula and its adjacent offshore areas. Condensate reserves (ABC1) are estimated at 230.7 mln t and oil reserves – at 291.8 mln t. In terms of gas reserves (ABC1+C2) the Bovanenkovskoye field is the most significant one on the Yamal Peninsula (4.9 tcm).

The licenses for the right to use the subsurface resources of the Bovanenkovskoye, Kharasaveyskoye, Novoportovskoye, Kruzenshternskoye, Severo-Tambeyskoye, Zapadno-Tambeyskoye, Tasiyskoye and Malyginskoye fields are held by Gazprom Group.

The Cenomanian-Aptian deposits of the Bovanenkovskoye field are a paramount development target on the Yamal. It is anticipated to increase the projected gas production at the Bovanenkovskoye field from current 115 bcmpa to 140 bcmpa in the long-term.

In order to deliver the extracted gas to the UGSS, it is necessary to build before 2030 a 2,500-km-long gas transportation system including the new 1,100-km-long Bovanenkovo – Ukhta gas transportation corridor – gas trunkline system.

In October 2006 the Gazprom Management Committee reviewed the results of the Investment Rationale for the pre-development of the Bovanenkovskoye field on the Yamal Peninsula, and for gas transportation. The Committee ordered to initiate the investment stage of the Bovanenkovskoye field development and gas main network construction.

The Company’s relevant business units were entrusted to ensure the commissioning in the third quarter of 2011 of the first startup complexes (rated at least at 15 bcmpa of gas) intended for the pre-development of the Cenomanian-Aptian deposits of the Bovanenkovskoye field, as well as of the Bovanenkovo – Ukhta gas trunkline system. The first startup complex involves construction of 98 wells (60 wells are to be brought onstream in the third quarter of 2011) and the first module of a comprehensive gas treatment unit.

In 2008 Gazprom was constructing top-priority utility, fire-fighting, sanitary and epidemiological, environmental safety, industrial and transport infrastructure facilities at the Bovanenkovskoye field. A total of 29 top-priority facilities are planned for commissioning at the Bovanenkovskoye field in 2008.

Pipes and equipment supply, as well as site preparation are in progress. The preparatory work for constructing the Baidaratskaya compressor station is underway as well.

In July 2008 Gazprom launched the construction of a challenging pipeline section – the submerged crossing in the Baidarata Bay. A total of 37.7 km of pipelines were laid in the section this year. By 2011 the Baidarata Bay is planned to see the construction of the first two lines (72-km-long each) of the submerged crossing.

On December 3, 2008 Gazprom initiated the Yamal megaproject implementation. The Company started the Bovanenkovo – Ukhta gas trunkline system construction and the first gas production well drilling at the Bovanenkovskoye field.