The Gazprom Headquarters today has hosted a working meeting between Alexey Miller, Chairman of the Gazprom Management Committee and Alexander Khoroshavin, Governor of the Sakhalin Oblast.

The parties discussed issues relevant to cooperation in the sector of oil and gas projects execution in the Sakhalin Oblast as well as the regional gasification prospects.

The meeting particularly underscored that utilization of the resource base for the Sakhalin projects is a top-priority issue for gas supply of consumers in the Sakhalin Oblast as well as Khabarovsky and Primorsky Krais.

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In 2006 Gazprom and the Sakhalin Oblast Administration signed the Agreement of cooperation and Gasification Accord.

On September 3, 2007, the Ministry of Industry and Energy of Russia approved the Development Program for the Integrated Gas Production, Transportation and Supply System in Eastern Siberia and the Far East with due regard of Possible Gas Export to China and other Asia-Pacific Countries. The Program defines the Sakhalin gas production center as a primary region for the gas industry development in the Far East and covers not only Sakhalin-1, 2 projects being executed at the moment, but also prospective projects such as Sakhalin-3 project and others. Pursuant to the Directive of the Russian Federation Government as of July 16, 2002 Gazprom was appointed as the Eastern Program coordinator.

The major principle of the Eastern Program is a primary gas supply of Russian consumers. In a midterm perspective gas of the Sakhalin-1 project would be the only source to satisfy gas needs of consumers in the Khabarovsk, Primorsky Krais, Sakhalin Oblast, Jewish Autonomous Okrug.

The Sakhalin center development is a key direction of Gazprom business activity in the Far East.

In 2007 the Gazprom Representative Office for the Sakhalin Oblast was established in the town of Yuzhno-Sakhalinsk.

Gazprom established the Coordinating Committee for the Company’s joining the oil and gas projects on the Sakhalin shelf.

On April 18, 2007, Gazprom and Sakhalin Energy shareholders (Royal Dutch Shell plc, Mitsui & Co. Ltd and Mitsubishi Corporation) where Sakhalin Energy is the Sakhalin-2 project operator signed Purchase and Sale Agreement, which stipulates Gazprom acquisition of a 50 per cent plus one share stake in Sakhalin Energy.