Gazprom’s Headquarters hosted the Board of Directors meetings.

The Board of Directors has taken into consideration the information on Gazprom’s strategy to develop Sakhalin shelf resources. The Board of Directors decided to consider as top-priority building Gazprom’s resource base as well as Sakhalin-Khabarovsk-Vladivostok gas transmission grid development.

The Board of Directors decided to consider new edition of Gazprom’s dividend policy after regular annual General shareholders meeting.

The Board of Directors heard the information on the system of Gazprom’s heads remuneration. The final decision will be taken at one of the Board of Directors regular meeting.

Reference:

“Program on development of unified system of gas production, transmission and gas supply with regard to probable gas export to China and other Asia Pacific markets” draft envisages first and foremost to form large gas production centre in Sakhalin targeted to supply gas to the Russian Far East consumers and gas export to promising markets in North-Eastern Asia.

In November 2003 Gazprom’s Board of Directors decided to enhance activity in Russia’s Eastern Siberia and Far East, including Krasnoyarsk and Khabarovsk territories, Irkutsk and Sakhalin regions, Republic of Sakha (Yakutia).

At present, Gazprom is engaged in consistent work to acquire production assets and gas transmission facilities.

Sakhalin shelf is the most studied sea area in the Far East. Within shelf boundaries nine hydrocarbon fields were discovered with gas, oil and condensate reserves of 1.2 tcm, 394.4 mcm, 88.5 million tons, correspondinly. The Sakhalin shelf prospect hydrocarbon resources exceed 6 btce.

Nine projects (sites) were chosen in Sakhalin shelf.

Sakhalin-1 and Sakhalin-2 projects include the discovered fields and are in the distributed bowels of the earth fund. They are realized mainly by consortiums of foreign partners based on concluded production sharing agreements.

Sakhalin-3, 4, 5, 6 projects include promising bowels of the earth sites partly in use for geological study and partly found in undistributed fund.

Sakhalin-7, 8, 9 projects include promising bowels of the earth sites and are in undistributed fund.