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February 28, 2008

Meeting on Bovanenkovskoye field pre-development and Bovanenkovo – Ukhta gas trunkline system

Headed by Alexander Ananenkov, Deputy Chairman of the Gazprom Management Committee a Gazprom delegation is on a working visit to the Yamal Peninsula.

The delegation is comprised of Bogdan Budzulyak, Yaroslav Golko, Viktor Ilyushin, Vasily Podyuk and Igor Fyodorov, Members of the Company’s Management Committee, as well as the heads of the core structural units of Gazprom administration, heads and specialists of the Company’s subsidiaries, engineering companies, and contractors: Gazprom dobycha Nadym, Gazprom transgaz Ukhta, Burgaz, Gazkomplektimpex, Yamalgazinvest, Gazpromenergo, VNIIGAZ, VNIPIgazdobycha, YuzhNIIgiprogaz, TyumenNIIgiprogaz, Spetsgazavtotrans, Gazpromstroyengineering, and others.

The Gazprom delegation visited the Bovanenkovskoye field and got acquainted with the progress in its pre-development and social facilities construction.

Alexander Ananenkov convened a meeting in Nadym on the engineering, procurement, financing and construction of the Bovanenkovskoye oil and gas condensate field infrastructure facilities, Bovanenkovo–Ukhta gas trunkline system, and Obskaya–Bovanenkovo railroad.

A focus was put on the matters related to the Bovanenkovskoye field pre-development, meeting the construction and wells commissioning deadlines, as well as the implementation of the Bovanenkovo–Ukhta gas trunkline system investment project. The possibility of accelerating the first startup complex commissioning at the Bovanenkovskoye field was also considered.

The meeting participants specified that in 2007 the development of top-priority facilities for fire prevention, ensuring sanitary, epidemiological, and environmental safety, as well as household, utility, and industrial facilities, transport infrastructure had been underway at the Bovanenkovskoye field. The operations had been carried out in compliance with the capital investment plan, and construction and installation work schedule. In 2008, the development of the top-priority facilities had continued at the Bovanenkovskoye field including household, utility, industrial facilities, and transport infrastructure, as well as production facilities.

In addition, the meeting addressed the information on exploration and design work, construction and assembly work carried out within the frame of Obskaya–Bovanenkovo railroad construction. It was noted that in 2007 construction and assembly work at the construction sites had been carried out in full conformance with the capital investment plan and work schedule. In particular, 197 km of railroad and 13 bridges had been put into operation. The participants of the meeting emphasized that as soon as by late 2010 all the materials and machinery for the Bovanenkovskoye field facilities construction would be supplied by rail.

Based on the meeting results the core business units of Gazprom and its subsidiaries were entrusted with the appropriate tasks.

“Full-scale timely development of the huge fields on the Yamal Peninsula is very important for ensuring energy security of Russia and is one of the top-priority projects of Gazprom. We are facing a large-scale challenge of establishing a super-powerful brand-new gas production center equipped with the state-of-the-art technologies. Before long, this will allow to establish a cutting-edge strategic center for gas production in Russia. In addition, the construction of a new system for gas transition from the Yamal – Northern corridor – will play into the hand of a full-scale reconstruction of the Unified Gas Supply System operated in Russia. There is no doubt that the commissioning of the first and biggest field on the Yamal – Bovanenkovskoye – will be carried out in full compliance with the schedule set by the Management Committee of Gazprom – by mid 2011,” said Alexander Ananenkov at the end of the meeting.


In January 2002, the Gazprom Management Committee identified the Yamal Peninsula as a region of the Company’s strategic interest. The commercial development of Yamal fields will increase local gas production to 250 bcmpa. Accessing the Yamal is of utter importance for the purpose of ensuring gas production growth.

11 gas fields and 15 oil and gas condensate fields have been discovered in the Yamal. The total recoverable gas, condensate, and oil reserves amount to 10.4 tcm, 228.3 mln t, and 291.8 mln t, respectively. The aggregate reserves of the largest Yamal fields, namely the Bovanenkovskoye, Kharasaveyskoye and Novoportovskoye operated by Gazprom dobycha Nadym (a wholly owned subsidiary of Gazprom) under the respective licenses, account for 5.9 tcm of gas, 100.2 mln t of condensate, and 227 mln t of oil.

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 a 2,451-km-long gas transmission network including a new 1,100-km-long transmission corridor from Bovanenkovo to Ukhta.

In October 2006, the Gazprom Management Committee reviewed the progress in compiling 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 oil and gas condensate field development and gas main network construction.

The Gazprom core business units were entrusted with ensuring the commissioning of the first startup complexes at the Cenomanian-Aptian deposits of the Bovanenkovskoye field rated at least at 15 bcm of gas in the 3rd quarter of 2011, as well as of the Bovanenkovo–Ukhta gas trunkline system.




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