A regular meeting of the Gazprom Management Committee was held yesterday.

The Management Committee took into consideration the 2002-2007 main results of execution of the Program for Gazprom’s Mineral Resource Base Development up to 2030.

The Management Committee entrusted Gazprom’s core business units and its subsidiaries with the following tasks:

• continue the development program for drilling and geophysical facilities forthe purpose of performing exploration drilling and testing work in conformity with the Program;
• keep implementing the activities provided for in the Program for intensification & technical re-equipment of drilling works, geophysical survey and testing of exploration wells, as well as in the List of top priority activities over 2006-2010 related to the exploitation of Russia’s offshore hydrocarbon resources;
• resume the work to improve the management system of the Gazprom mineral resource base;
• elaborate a method enabling to evaluate the efficiency of exploration work carried out in exploration areas.

It was noted at the meeting that the Program implementation between 2002 and 2007 had resulted in the increase of the Company’s reserves by 3.2 bln t of coal equivalent (130 per cent on the plan).

Background:

The Program for Gazprom’s Mineral Resource Base Development up to 2030 was worked out and approved by the Gazprom Management Committee in 2002. The Program defines the main directions of exploration work and the license policy of Gazprom.

While implementing the Program during 2002-2007, 20 new fields and 43 deposits of oil and gas were discovered. Over the last three years the Company has been steadily building up reserves due to a large scope of exploration work overbalancing the annual production level.

In 2007 exploration work assured an aggregate increase in hydrocarbon reserves (including Gazprom Neft) equal to 733.2 mln t of coal equivalent including 592.1 bcm of gas and 141 mln t of liquid hydrocarbons. The replenishment rate of reserves reached 1.08.