A meeting of the Board of Directors has been initiated at the Gazprom Headquarters.

The Board of Directors took to notice the information on the Comprehensive Development Program for the Yamal Peninsula onshore and offshore fields.

The Board of Directors entrusted the Management Committee with further participating in the activity implemented by the Russian Federation Energy Ministry related to the preparation of the draft Program for submission to the Russian Federation Government.

The Board of Directors also entrusted the Management Committee with further developing hydrocarbon fields of the Yamal Peninsula while meeting the principles prescribed in the draft Program concerning reasonable nature management, environmental protection, securing the original lifestyle of the indigenous population, the archeological and cultural sites.

Background: 

In January 2002 the Gazprom Management Committee identified the Yamal Peninsula as a region of the Company’s strategic interests. Commercial development of the Yamal onshore fields will make it possible to build up 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, which total explored gas reserves account for 10.4 tcm, the recoverable condensate reserves – 228.3 mln t and the oil reserves – 291.8 mln t. The aggregate reserves of the largest Yamal fields, namely the Bovanenkovo, Kharasavey 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. The projected gas production rate at the Bovanenkovo field is defined at 115 bcmpa. In the long term it is anticipated to increase the projected gas production to 140 bcmpa. In order to deliver the extracted gas to the UGSS, it is necessary to build a 2,500 – km –long gas transmission system including a new 1,100 – km – long gas transmission corridor – the Bovanenkovo – Ukhta gas trunkline system.

In October 2006 the Gazprom Management Committee ordered to initiate the investment stage of the Bovanenkovo field development and gas trunkline system construction. The Gazprom core business units were entrusted with ensuring in the 3rd quarter of 2011 the commissioning of the first startup complexes of the Bovanenkovo field rated at least at 15 bcmpa of gas, as well as of the Bovanenkovo–Ukhta gas trunkline system.

The Comprehensive Development Program for the Yamal Peninsula onshore and offshore fields was developed by Gazprom jointly with the Administration of the Yamal – Nenets Autonomous Okrug (YaNAD) under the orders of President and the Government of the Russian Federation in 2002.

As the Program was considered by the Ministries and state authorities, there occurred considerable changes in the conditions of development and functioning of the country’s energy sector including the gas industry. In this context, a necessity emerged to make adjustments in the Program.

The Program was adjusted in 2007 by Gazprom jointly with the YaNAD Administration based on the results of long-term investigations for establishing scientific frameworks of engineering, technological, environmental and technical solutions aimed at developing the field and constructing gas pipelines on the Yamal Peninsula.

The draft Program closely investigated the state of the Yamal resource base and the prospects for its development, technical and technological aspects of field development and hydrocarbon transportation, development of production and social infrastructure, as well as of industrial and environmental safety. The Company assessed the financial efficiency and substantiated the measures of state support in the process of the Program implementation.