A meeting of Gazprom’s Board of Directors took place at the Company’s Headquarters.

The Board of Directors agreed upon the transactions related to Urengoygazprom’s involvement in funding the Project on Play 1A of Urengoy’s Achimov deposits development.

At the same time, the Board reviewed Gazprom’s preliminary operating results and execution of the 2004 Budget (Financial Plan). The meeting resolved to update the corporate social and economic development, investment program and budget (financial plan) parameters for 2004 and to approve these at a Board meeting to be held in absentia.

The Board delayed the Gazprom’s 2005 budget and investment program approval issue until the next meeting.

Reference:

In 2004, the Gazprom Group is expected to produce 545 bcm of gas, 3 and 4.8 bcm up on the target and 2003 actual production, respectively.

Gas condensate and oil production will also jump, under preliminary estimates, to 11.9 mln t, exceeding the target and production rates over 2003 by 0.6 and 0.9 mln t, respectively.

32.5 bcm of gas and 11.3 mln t of gas condensate and oil are slated for processing in 2004.

531.9 bcm of gas are projected to be sold to all groups of consumers.

Gas exports to outside the FSU and CIS & Baltic States are scheduled at 143.4 and 47.8 bcm, respectively, 3.4 and 6.8 bcm, respectively, up on the target and 10.5 and 5.3 bcm, respectively, up on the 2003 production amount.

Gazprom’s 2004 overall earnings will exceed the target by RUR 38.7 billion, amounting to RUR 1,086.3 billion, with total income and revenues to reach RUR 1,238.2 billion.

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