The Gazprom Headquarters hosted today a working meeting between Alexey Miller, Chairman of the Company’s Management Committee and Vyacheslav Shtyrov, President of the Republic of Sakha (Yakutia).

The parties appreciated the joint efforts made by Gazprom and the Republican Government to execute the Agreement of Cooperation and the Accord on Gasification.

Alexey Miller and Vyacheslav Shtyrov discussed the key cooperation issues addressing, inter alia, Gazprom’s paramount projects in Yakutia: Chayanda oil, gas and condensate field development and Yakutia – Khabarovsk – Vladivostok gas trunkline construction.

The parties reached the agreement to shortly convene a joint meeting of the Gazprom Management Committee and the Republic of Sakha (Yakutia) Government so as to address the development of the Yakutsk gas production center as well as gas processing and gas chemical facilities as part of the Eastern Gas Program.

Background:

Gazprom and the Republic of Sakha (Yakutia) entered into the Agreement of Cooperation in July 2007 and into the Accord on Gasification – in June 2008.

The September 2007 Order by the Russian Federation Industry and Energy Ministry approved the state-run Development Program for 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 (Eastern Gas Program). Gazprom was appointed by the Russian Federation Government as the Program execution coordinator.

It is planned to establish the Sakhalin, Yakutsk, Krasnoyarsk, Irkutsk and Kamchatka gas production centers in eastern Russia.

In accordance with the Russian Federation Government Directive of April 16, 2008, Gazprom as the owner of the Unified Gas Supply System was granted the license for the Chayanda oil, gas and condensate field – the basic field of the Yakutsk gas production center.

The Chayanda oil and gas condensate field is located in the Lensky District of the Republic of Sakha (Yakutia). The C1+C2 reserves of the field account for 1.24 trillion cubic meters of gas and 68.4 million tons of oil and condensate. At present, geological exploration is underway at the field and its development plan is projected to be completed in 2010. The Chayanda oil rim and gas deposit are to be taken into operation in 2014 and 2016 accordingly.

In 2012, as soon as the Sakhalin – Khabarovsk – Vladivostok gas transmission system is completed, Gazprom plans to start constructing the Yakutia – Khabarovsk – Vladivostok gas trunkline that will convey Yakutia’s gas to the southern regions of the Far Eastern Federal District and the Pacific coastal areas.

In March 2009 the Russian Government endorsed a comprehensive investment project for the elaboration of project documents on South Yakutia development.

The South Yakutia Comprehensive Development investment project stipulates creating a new large industrial region in eastern Russia based on the Republic of Sakha (Yakutia) mineral and hydropower resources including the Chayanda field.

In June 2009 Gazprom joined the Investment Agreement to implement the comprehensive investment project for the elaboration of project documents on the South Yakutia Comprehensive Development investment project backed by the state through budget allocations from the Russian Federation Investment Fund.

Pursuant to the Investment Agreement, Gazprom plans to act as a co-investor of the South Yakutia Comprehensive Development project, for instance, with a view to creating the Yakutsk gas production center.