The Gazprom Management Committee reviewed the performance of the Company’s subsidiaries over the autumn/winter 2008-2009 period.

As it was emphasized, during the reporting period Gazprom’s subsidiaries had ensured sustainable gas deliveries to Russian consumers and abroad.

During the autumn/winter 2008-2009 period (October-March) Gazprom produced 261.5 billion cubic meters of gas, which is a 36.4 billion cubic meters decrease as compared to the respective period in 2007-2008. The production decrease is driven by lower gas demand in the domestic and foreign markets as a result of the global financial and economic crisis and abnormally warm winter, as well as forced suspension of Russian gas export via Ukraine.

To ensure reliable and uninterrupted operation of the Unified Gas Supply System within the autumn/winter 2009-2010 period, Gazprom’s Management Committee entrusted the Company Administration specialized subdivisions with the following assignments:

- develop the Major Guidelines on Gazprom’s subsidiary infrastructure preparation for operation during the autumn/winter 2009-2010 period;

- perform scheduled preventive maintenance and repair works at UGS facilities; stockpile at least 64 billion cubic meters of commercial gas reserves at Russia’s UGS facilities by the next autumn/winter season start-up and ensure UGS maximum daily send-out capacity of 620 million cubic meters.

Gazprom’s subsidiaries were entrusted with:

- fulfilling diagnostics, overhaul and reconstruction plans and programs for gas production, transmission, underground storage and processing facilities in 2009;

- timely implementing the Major Guidelines on Gazprom’s subsidiary infrastructure preparation for operation during the autumn/winter 2009-2010 season;

- preparation of transportation vehicles and specialized equipment for operation during the autumn/winter 2009-2010 period.

Background:

In 2008 the comprehensive gas treatment unit (UKPG) of the Chikanskoye field and supplementary capacities of the Yuzhno-Russkoye field UKPG were put on stream, phase 2 of booster compressor stations at the UKPGs of the Yamsoveyskoye and Zapadno-Tarkosalinskoye fields was put into operation with 160 MW in total capacity. The commissioning of 152 wells and overhaul of 626 wells were completed in gas production areas.

In 2008 Gazprom accomplished 16 scheduled preventive maintenance and repair actions at gas transmission facilities. The in-line inspection plan was fulfilled – 19.7 thousand kilometers of gas pipelines were examined. 2,756 kilometers of gas pipelines were totally repaired and 130 kilometers – reconstructed.

By the autumn/winter 2008-2009 withdrawal season start-up the potential daily send-out capacity of the Russian UGS facilities in December-February was increased to 500 million cubic meters per day and the maximum potential send-out capacity – to 620 million cubic meters per day. This represents an increase of 7.65 and 12 million cubic meters accordingly, compared to 2007-2008 withdrawal season start-up.