The 10th International Conference for Oil and Gas Resources Development of the Russian Arctic and CIS Continental Shelf RAO/CIS Offshore 2011 is underway in Saint Petersburg. Gazprom's delegation is taking part in the Conference.

Vsevolod Cherepanov, Member of the Management Committee – Head of the Gas, Gas Condensate and Oil Production Department of Gazprom delivered a speech today at the plenary meeting.

He emphasized a continual increase in offshore fields within the stock of Gazprom Group's explored hydrocarbon reserves. “The offshore reserves that accounted for 9 per cent in 2005 increased up to 15 per cent in 2010,” he said. The speaker reported that the share of shelf reserves will exceed 40 per cent in the estimated reserves increase until 2030.

Vsevolod Cherepanov paid special attention to the environmental protection of the Russian continental shelf. In particular, he highlighted the following strategic areas of Gazprom's activity here:

• upgrading and commissioning of new production capacities based on the best technologies that can dramatically mitigate the negative environmental impacts;
• participation in research and practical actions on restoring and protecting the global biosphere balance, flora and fauna;
• taking of measures to prevent emergencies with negative environmental impacts;
• development and implementation of corporate programs, participation in regional and federal programs securing environmental safety;
• streamlining environmental management systems.

The speaker emphasized that in addition to mandatory environmental measures Gazprom initiates extra environmental actions. In particular, as part of the Sakhalin II project the programs on sustaining the population of western grey whales, protection of wild salmons and monitoring of protected species of birds and, first of all, the Steller's sea eagles.

“It is critically important for Gazprom to preserve the unique ecosystem shaped on the Russian continental shelf, and the Company makes every effort to meet this objective,” said Vsevolod Cherepanov summarizing his speech.

Background

The initial aggregate hydrocarbon resources of Russia's continental shelf average 100 billion tons of fuel equivalent, of which 80 per cent is gas. The bulk of the hydrocarbon resources (over 80 per cent) are concentrated in the Barents, Pechora, Kara Seas and the Sea of Okhotsk, with gas and condensate prevailing in the Barents and Kara Seas, oil – in the Pechora Sea, oil and gas – in the Sea of Okhotsk.

Gazprom's plans on the Russian continental shelf development are determined by the Program for hydrocarbon resources development on the Russian Federation shelf until 2030 adopted by the Gazprom Board of Directors in April 2011. The Program implementation will enable Gazprom to annually produce over 200 billion cubic meters of gas (without regard to gas from Sakhalin II) and some 10 million tons of oil on the Russian shelf by 2030.

The International Conference for Oil and Gas Resources Development of the Russian Arctic and CIS Continental Shelf RAO/CIS Offshore has been held in Saint Petersburg since 1993. The Conference pursues the major objective of developing a constructive dialogue among the Government, leading petroleum companies and prominent experts on issues relevant to the Russian shelf development with due regard to environmental programs and in cooperation with the countries located near the Arctic zone.