Today, as part of Gazprom delegation’s business trip to Salekhard, Alexey Miller, Chairman of the Company’s Management Committee and Yury Neyolov, Governor of the Yamal-Nenets Autonomous Okrug (YaNAO) held a meeting on interaction in the Bovanenkovo fielddevelopment, Bovanenkovo – Ukhta gas trunkline system construction and Obskaya – Bovanenkovo railroad construction.

Taking part in the meeting were Members of Gazprom’s Management Committee: Yaroslav Golko, Head of the Investment and Construction Department, Viktor Ilyushin, Head of the Department for Relationships with Russian Federation Regions, Igor Fyodorov, Director General of Gazkomplektimpex, specialists and experts of Gazprom’s Administration core business units and subsidiary companies operating in the region, as well as representatives of the YaNAO Administration.

The participants noted that the Yamal climate, environmental and social peculiarities were taken into account during the implementation of projects at the Peninsula. In particular, engineering solutions were elaborated so as to ensure safe operation of facilities by minimizing their impact on the environment, economy and indigenous culture.

For example, reducing distances between wells, decreasing the number of transmission lines through higher pressure of up to 120 atm and a string of other innovation techniques made it possible to cut the land withdrawal area.

The meeting addressed the information on the progress with Yamal projects. Currently, construction work on top priority household, power supply, gas production and treatment facilities and transport infrastructure as well as preparations for production well drilling in the current year are underway at the Bovanenkovo field.

Also, the year 2008 will see the launch of the Bovanenkovo–Ukhta trunkline construction. The pipes supplied for the trunkline are made domestically, have the diameter of 1,420 mm and the design pressure of 120 atm. Gazprom has already launched the construction of the most complicated section of the trunkline system – a submerged crossing via the Baidarata Bay. Currently, more than 20 km of pipes are laid. Furthermore, construction work began on the Baidaratskaya compressor station.

The construction of the Obskaya  Bovanenkovo railroad is being performed in strict compliance with the schedule. In particular, the main stage of the crossing construction is completed over the Yuribey River floodplan, which is unique in global practice.

The meeting participants emphasized that the Bovanenkovo field development was being implemented in cooperation and with robust support of the YaNAO Administration. The field development provides for setting up a number of the regionally significant assets, which will enable to considerably improve the present transportation and social infrastructure. In particular, there are plans to construct motorways, an airport at the Bovanenkovo field as well as communication and TV facilities, a medical center with a clinic and a first-aid hospital.

“The Bovanenkovo field launch in 2011 will mark a new epoch in the Russian natural gas industry – the development of huge fields on the Yamal Peninsula, which are most essential for ensuring the national energy security. Setting up an entirely new strategic gas production center on Yamal and constructing the Northern gas transmission corridor are among the top priority Gazprom projects.

In 2009-2011 the share of Yamal projects in the Company’s Capital Construction Plan will make up 30 per cent,” stated Alexey Miller.

Based on the results of the meeting Gazprom’s core business units and subsidiaries were entrusted with securing the timely implementation of projects on the Yamal Peninsula.

Background:

In January 2002 the Gazprom Management Committee identified the Yamal Peninsula as a region of the Company’s strategic interest. The commercial development of Yamal fields will increase local gas production to 250 bcmpa. Accessing the Yamal is of utter importance for the purpose of ensuring gas production growth.

11 gas fields and 15 oil and gas condensate fields have been discovered in the Yamal. The total recoverable gas, condensate, and oil reserves amount to 10.4 tcm, 228.3 mln t, and 291.8 mln t, respectively. The aggregate reserves of the largest Yamal fields, namely the Bovanenkovo, Kharasaveyskoye and Novoportovskoye operated by Gazprom dobycha Nadym (a wholly owned subsidiary of Gazprom) under the respective licenses, account for 5.9 tcm of gas, 100.2 mln t of condensate, and 227 mln t of oil.

The Cenomanian-Aptian deposits of the Bovanenkovo field are a paramount development target on the Yamal. It is anticipated to increase the projected gas production at the Bovanenkovo field from current 115 bcmpa to 140 bcmpa in the long-term. In order to deliver the extracted gas to the UGSS, it is necessary to build a 2,451-km-long gas transmission network including a new 1,100-km-long transmission corridor from Bovanenkovo to Ukhta.

In October 2006 the Gazprom Management Committee ordered to initiate the investment stage of the Bovanenkovo field development and gas main network construction. The Gazprom core business units were entrusted with ensuring the commissioning of the first startup complexes at the Cenomanian-Aptian deposits of the Bovanenkovo field rated at least at 15 bcm of gas in the 3rd quarter of 2011, as well as of the Bovanenkovo – Ukhta gas trunkline system.