Led by Alexander Ananenkov, Deputy Chairman of the Gazprom Management Committee, the Company’s delegation made a business trip to the Kamchatka Krai.

Alexander Ananenkov held a working meeting dedicated to the implementation of the Gas Supply to the Kamchatka Oblast, Phase 1. Gas Supply to Petropavlovsk-Kamchatsky investment project. Taking part in the meeting were Valery Yazev, Deputy Chairman of the State Duma of the Russian Federation Federal Assembly and President of the Russian Gas Society, heads and specialists from the Company’s specialized subdivisions, subsidiaries and contractors.

Alexander Ananenkov stated that Gazprom was executing the investment project according to the assignments by the Russian Federation President and Government, and in line with the preset schedule. It was emphasized that the Company performed construction of the linear section of the gas pipeline and production drilling ahead of schedule, while field pre-development was carried out in strict compliance with the respective schedules.

Based on the meeting results, specialized subdivisions and subsidiaries of Gazprom were ordered to timely complete construction of the first start-up complex for the Gas Supply to Kamchatka project.

As part of the trip, Alexander Ananenkov and Valery Yazev met with Alexey Kuzmitsky, Governor of the Kamchatka Krai. The parties discussed the progress with the Agreement of Cooperation and the Accord on Gasification between Gazprom and the Kamchatka Krai Government. Special attention was paid to the synchronized gasification of regional facilities and consumer preparation for gas deliveries. The meeting also discussed the need to increase the Kamchatka Krai budget by attracting federal funds in order to succeed in consumer preparation for gas supplies in 2010.

Background:

In September 2007 the Russian Federation Government adopted the decision prescribing Gazprom to get involved in the Gas Supply to the Kamchatka Oblast, Phase 1. Gas Supply to Petropavlovsk-Kamchatsky project.

As part of the project, Gazprom is pre-developing the Kshukskoye and Nizhne-Kvakchikskoye fields on the western coast of the Kamchatka Peninsula and is constructing the Sobolevo – Petropavlovsk-Kamchatsky gas trunkline projected for commissioning in 2010. The project also stipulates construction of gas distribution networks in Petropavlovsk-Kamchatsky. The total length of the gas pipeline route accounts for 392 kilometers, of which 300 kilometers of pipes have been welded and trenched. Production drilling and pre-development operations are underway in the Kshukskoye and Nizhne-Kvakchikskoye fields.

Gazprom invest Vostok (a 100 per cent subsidiary of Gazprom) is the customer of the Gas Supply to the Kamchatka Oblast, Phase 1. Gas Supply to Petropavlovsk-Kamchatsky project.

In June 2009 the Russian Federation Government resolved to grant Gazprom the subsurface license for the Zapadno-Kamchatsky Block.

Gazprom and the Kamchatka Krai Government entered into the Accord on Gasification in January 2008, and into the Agreement of Cooperation in February 2009.

The gasification level in the Kamchatka Krai is below 1 per cent (LNG is not supplied). Natural gas in the amount of 9 million cubic meters per annum is supplied to the settlements of Sobolevo and Krutogorovsky on the western coast of Kamchatka from the Kshukskoye gas and condensate field.

Presently, Kamchatgazprom (92.25 per cent state-owned) is dealing with regional gas production and transmission.