The Gazprom Management Committee addressed the information relevant to the progress with the Bovanenkovo field pre-development and the Bovanenkovo – Ukhta gas trunkline system (GTS) construction.

The Management Committee resolved to feed the Yamal gas into the Unified Gas Supply System (UGSS) ahead of schedule – in June 2012. Previously, it had been planned to launch the Yamal gas production in the third quarter of 2012.

To date, 104 pre-development facilities including industrial bases, life support, power supply and transport infrastructure have been put onstream at the Bovanenkovo field. Drilling of production wells is in progress. A total of 177 wells have been drilled and downhole equipment has been run into 114 wells since the construction launch.

Gas transmission capacities to convey the Yamal gas are being built. Out of the 1,200 kilometers of the Bovanenkovo – Ukhta GTS 1,111 kilometers (more than 90 per cent) have been welded up and 1,003 kilometers have been trenched and buried. The first line of the submerged crossing via the Baidarata Bay has been tested, the second and the third lines are currently under construction. Adjustment work is being carried out at the Baidaratskaya main compressor station.

The Management Committee tasked its subsidiaries and contracting agencies to ensure commissioning of the startup complexes within the Bovanenkovo field pre-development and to complete the Bovanenkovo – Ukhta GTS construction in June 2012.

Background

The Yamal Peninsula is a region of Gazprom's strategic interests. Commercial development of Yamal will increase local gas production to 310–360 billion cubic meters per annum by 2030. Accessing Yamal is fundamentally important for ensuring domestic gas production growth.

32 fields were discovered in the Yamal Peninsula and the adjacent offshore areas with aggregate A+B+C1+C2 reserves and C3 resources reaching 26.5 trillion cubic meters of gas and some 1.64 billion tons of oil and condensate. The Bovanenkovo field is the most significant one on the Yamal Peninsula as it's A+B+C1+C2 gas reserves amount to 4.9 trillion cubic meters.

In December 2008 Gazprom commenced practical implementation of the Yamal megaproject. The Company started the operations aimed at the Bovanenkovo field development and the Bovanenkovo – Ukhta GTS construction. Projected gas production in the Bovanenkovo field is estimated at 115 billion cubic meters per annum to be increased to 140 billion cubic meters in the long term.