A working meeting between Alexey Miller, Gazprom’s Management Committee Chairman, and Abbas Abbasov, Azerbaijan’s First Deputy Prime Minister, was held today at Gazprom’s Headquarters.

The parties examined the progress in and prospects for cooperation between Russia and Azerbaijan in the gas business. In particular, the parties discussed the possibility for Gazprom to increase gas deliveries to Azerbaijan from 4.5 to 6 bcm in 2004, in order to fully meet Azerbaijan’s gas needs.

Reference:

Azerbaijan’s gas needs account for 9.5-10 bcm per year. Gas share in the country’s fuel and energy balance averages 45%.

Azerbaijan has lately been producing some 5.5 bcm of gas annually, including 40% of gas produced at the Bahar field. From 2006 onwards Azerbaijan plans to build up gas production due to commissioning of the Shah-Deniz field.

Gazprom initiated gas deliveries to Azerbaijan on January 1, 2004. In December 2003, Gazexport and the State Oil Corporation of the Republic of Azerbaijan signed a 5-year gas sales contract effective from January 1, 2004 and valid through December 31, 2008. The Contract envisages 4.5 bcm of annual gas deliveries to Azerbaijan.

Gazexport, a 100% Gazprom’s subsidiary, is the world-largest natural gas exporter from Russia to Europe and the CIS countries.

DIVISION OF RELATIONS WITH MASS MEDIA