The Board of Directors heard a report on Gazprom’s strategy in the gas production sector and Program on comprehensive development of the Yamal Peninsula on- and offshore fields.

Gazprom’s Management Committee was entrusted with further updating the Program based on major technical solutions and economic parameters of the Substantiations of investment in the Yamal’s Bovanenkovo field development and transmission facilities, pending public expertise.

The Management Committee was also tasked with providing the Board in May this year with a comprehensive corporate gas extraction, transmission and supply up to 2020 program prepared based on a General Scheme of the RF gas industry development, to be completed in April 2006.

Reference:

In 2002 Gazprom’s Management Committee and Board of Directors set the strategic task of building up gas extraction. The Company has been successful in meeting said challenge. From 2002 through 2005 Gazprom produced 521.9, 540.2, 545.1 and 547.9 bcm of gas, respectively, bringing on stream seven gas treatment units with a 142.5 bcm/y total nominal capacity and 15 booster stations with 1,232 MW in overall installed capacity.

To supply the domestic market and fulfill export commitments, Gazprom plans to buoy up gas production to 550-560 bcm by 2010 and 580-590 bcm by 2020.

Before 2010 projected extraction rates will be achieved through the development of existing and new fields of the Nadym-Pur-Taz region, with the proximity to the gas transmission infrastructure pointing to the economic viability of their paramount development.

After 2010 gas production targets will be reached through the development of fields on the Yamal Peninsula, in the Arctic offshore, Ob and Taz Bays, Eastern Siberia and the Far East.

Gazprom’s strategy while developing promising fields implies a consistent approach towards synchronized development of gas extraction, transmission, processing and storage capacities. Such an approach helps optimize the corporate long-term investment portfolio.