Today Alexey Miller, Chairman of the Gazprom Management Committee and Bernhard Reutersberg, Chairman of the E.ON Ruhrgas AG Executive Board signed the certificate on the asset swap deal closing as part of the Yuzhno-Russkoye oil and gas field development project.

As a result of the deal, Gazprom acquired a 49 per cent stake in Gerosgaz, which owns 2.93 per cent of Gazprom’s shares, thus transferring the full ownership of these shares to Gazprom. In turn, E.ON AG acquired a 25 per cent stake in the charter capital of Severneftegazprom.

Accordingly, the Severneftegazprom ownership structure became as follows: Gazprom holds 50 per cent plus six ordinary registered shares; BASF AG – 25 per cent minus three ordinary registered shares plus three preferred non-voting shares, and E.ON AG – 25 per cent minus three ordinary registered shares plus three preferred non-voting shares.

Background:

E.ON AG is a world’s largest private electric power and gas concern. Since February 2003 E.ON Ruhrgas AG (until July 1, 2004 Ruhrgas AG) has been the subsidiary of E.ON AG responsible for the group's gas business in Europe, including natural gas production, distribution, transmission and storage.

E.ON Ruhrgas AG is the largest foreign shareholder in Gazprom (currently owning a nearly 3.5 per cent stake in the Company).

In October 2008 Gazprom and E.ON AG entered into the Agreement on joint participation in the Yuzhno-Russkoye oil and gas field development project, in June 2009 – the Agreement on asset swap in the area of gas production and trade.

In addition, E.ON AG partners with Gazprom in the Nord Stream gas pipeline construction project.

Severneftegazprom holds the license for hydrocarbons development, exploitation and production from the Yuzhno-Russkoye oil and gas field.

The Yuzhno-Russkoye oil and gas field is located in the Krasnoselkupsk District of the Yamal-Nenets Autonomous Okrug. The field's reserves are as follows: ABC1 gas reserves – 856.2 billion cubic meters, C2 gas reserves – 184 billion cubic meters, oil and gas condensate – 20.35 million tons. The startup complex of the Yuzhno-Russkoye field was commissioned in October 2007. The field is projected to yield 25 billion cubic meters of gas per year.

Gerosgaz was established in 1999 as a joint venture with Gazprom export owning a 51 per cent stake and E.ON Ruhrgas AG – a 49 per cent stake.