The Gazprom headquarters hosted a meeting moderated by Alexander Ananenkov, Deputy Chairman of the Gazprom Management Committee, and dedicated to the Company’s geological exploration activities.

Taking part in the meeting were heads and experts from Gazprom’s specialized subdivisions and subsidiaries: Gazprom bureniye, Gazprom VNIIGAZ, Gazprom dobycha Krasnoyarsk, Gazprom zarubezhneftegaz, Gazprom neft shelf, Gazprom promgaz, Gazflot, Georesurs and Gazprom EP International B.V.

The meeting participants addressed various aspects of the Geological Exploration Program implementation over 2010 to 2012. Particular attention was paid to the mineral and raw material base development in Eastern Siberia and the Far East. Specifically, the discussion centered on the progress with and the prospects for geological exploration in the Krasnoyarsk Krai.

It was noted that expansion of Gazprom’s operations geography and of the subsurface licenses portfolio brought about the challenge of streamlining the interaction methods with subsidiaries when implementing geological exploration projects. In addition, the meeting considered the proposals by Gazprom neft shelf and Gazprom zarubezhneftegaz relevant to improving geological exploration activities at Gazprom’s licensed blocks in Russia and abroad.

The meeting participants also discussed interaction issues with exploration contractors: bidding procedures for exploration service providers, awarding of contracts, implementation control, assuring synergy among the contracting companies performing geological exploration.

Background:

The Program for geological exploration at Gazprom’s licensed blocks in Russia and abroad over 2010 to 2012 has been developed with due regard to the geological exploration strategies ensuring:

-pre-treatment of hydrocarbon reserves at Gazprom’s licensed blocks located within the operating area of the Unified Gas Supply System;

- establishment of a resource base for new gas production centers in eastern Russia in the aim of implementing the Program for the development of an integrated gas production, transportation and supply system in Eastern Siberia and the Far East, taking into account potential gas exports to China and other Asia-Pacific countries;

- pre-treatment of hydrocarbon reserves on the Russian Federation continental shelf in order to achieve the strategic targets provided for in the Program for the gas industry’s mineral and raw material base development until 2030;

- compliance with the obligations related to international projects.

Starting from 2005 Gazprom has been confidently adding hydrocarbon reserves through geological exploration on an annual basis, which enables to offset production levels. The gas reserves growth rate is steadily higher than 1.

Gazprom performs geological exploration in Russia and abroad (Vietnam, India, Venezuela, Libya, Algeria, Uzbekistan, Tajikistan and Kyrgyzia). The Company carries out intensive research, licensing and pre-investment activities in a number of countries of Asia, North and Central Africa, Central and South America.