The Gazprom Headquarters hosted a meeting moderated by Alexander Ananenkov, Acting Chairman of the Management Committee. The meeting was dedicated to placing of Gazprom orders at Russian shipbuilding plants to produce marine equipment for the continental shelf development, LNG and CNG transportation.

Taking part in the meeting were Vasily Podyuk, Member of the Gazprom Management Committee, Head of the Gas, Gas Condensate and Oil Production Department, representatives of the Russian Federation Ministry of Industry and Trade, heads and specialists from Gazprom's specialized subdivisions and subsidiary companies – Gazprom dobycha shelf, Gazflot, Giprospetsgaz, as well as OPK, Vyborg Shipyard and Krylov Shipbuilding Research Institute.

During the meeting it was noted that Gazprom completely supported the initiative of Russian shipbuilders to create new production facilities for construction of the drilling and producing platforms, supply vessels and LNG carriers meeting the Company's high requirements and competing on quality with global peers.

The meeting participants noted that the Russian shipbuilding industry was capable of meeting Gazprom's demands. Offshore field development up to 2020 will require over ten drilling and producing platforms, over 60 vessels and floating structures of various types, as well as at least 23 LNG carriers. In this regard Gazprom is striving to maximally engage domestic shipbuilders.

Russian shipbuilders' representatives said they were confident that execution of Gazprom's orders would move the shipbuilding industry to a new stage of technological development.

Summing up the meeting, the specialized subdivisions and subsidiary companies of Gazprom, as well as the Krylov Shipbuilding Research Institute were tasked to finish elaboration of the Program for marine equipment creation and utilization in offshore oil and gas field development until 2030 as soon as possible. Before long, the specialized subdivisions of Gazprom will negotiate with Russian shipbuilders in order to prepare agreements for construction and supply of Russia's first domestically manufactured methane carriers once the tender procedures are completed.

Background:

The initial aggregate hydrocarbon resources of Russia's continental shelf average 100 billion tons of fuel equivalent, of which 80 per cent is gas. The bulk of the hydrocarbon resources (around 70 per cent) is concentrated in the Barents, Pechora and Kara Seas, with gas and condensate prevailing in the Barents and Kara, and oil – in the Pechora Sea.

Gazprom considers the Barents, Kara, Pechora and Caspian Sea shelves, the Ob and Taz Bays offshore areas, the Sea of Okhotsk shelf, including the Sakhalin Island and West Kamchatka offshore to be most promising.

For the purpose of arranging operations at offshore fields Gazprom elaborated and adopted in September 2005 the Program for Gazprom's activities aimed at hydrocarbon resources development on the Russian Federation shelf until 2030.

The Program stipulates comprehensive and stagewise development of offshore hydrocarbon resources, application of up-to-date highly efficient technical and technological solutions to all activity areas, taking into account advanced global practices.

At present, the shipbuilding companies of Northwestern Russia are implementing Gazprom's orders for the Arctic continental shelf development.

In Severodvinsk, Sevmash Production Association is constructing the Prirazlomnaya offshore ice-resistant stationary platform, Zvezdochka Shiprepairing Center – the Arkticheskaya jack-up floating drilling rig, Vyborg Shipyard – the Severnoye Siyanie (Northern Lights) and the Polyarnaya Zvezda (Polar Star) semi-submersible drilling rigs.

Gazprom has arranged actions on engineering the facilities for the Russian continental shelf development. The Krylov Shipbuilding Research Institute has elaborated by Gazprom's order a draft concept of an offshore ice-resistant drilling rig and engineering designs for eleven vessels to ensure offshore fields pre-development. The engineering design development for a semi-submersible drilling rig is underway. The Program for marine equipment creation and utilization in offshore oil and gas field development until 2030 is being elaborated by the Institute.