The Board of Directors meeting finalized at the Gazprom Headquarters.

The Board of Directors agreed on an increase in the authorized capital of Gazprom pererabotka and on the acquisition by this company of a 50.000008 per cent stake in Salavatnefteorgsintez from NPF Gazfond.

Reference:

OAO Salavatnefteorgsintez (Petrochemical Plant #18 before 1993) was founded in 1948. It is one of the leading enterprises in the Russian oil and gas processing industry. The core business activities of Salavatnefteorgsintez are oil processing, petrochemicals and mineral fertilizers production and marketing. A list of the company’s products accounts for 140 items. Export geography covers over 20 foreign countries, including FSU states.

Processing facilities of Gazprom and Salavatnefteorgsintez are connected by raw material, transport and product flows. Currently, Gazprom supplies raw materials to Salavatnefteorgsintez that makes products with a higher added value.

In 2003 a controlling stake in Salavatnefteorgsintez was entrusted to Gazprom by the founder –State Property Management Committee of the Republic of Bashkortostan. In 2007, NPF Gazfond acquired the shares.

Gazprom’s acquisition of a 50.000008 per cent stake in Salavatnefteorgsintez allowed for deeper processing of hydrocarbons, for establishing a platform for the development of stable gas condensate processing, and for increasing the effectiveness of product marketing owing to a coordinated marketing policy.

Gazprom pererabotka (a wholly owned subsidiary of Gazprom) was established in 2007 so as to consolidate natural gas, condensate and oil processing activities. Gazprom pererabotka includes the Urengoy Gas Condensate Treatment Directorate, the Surgut Gas Condensate Stabilization Plant and the Sosnogorsk Gas Processing Plant (set up upon reorganization of Surgutgazprom, Severgazprom and Urengoygazprom as part of the Gazprom corporate structure streamlining process).