According to the order by Alexey Miller, Chairman of the Gazprom Management Committee, Gazprom dobycha Krasnoyarsk was renamed Gazprom geologorazvedka and appointed the specialized subsidiary in charge of arranging and performing geological exploration at all of Gazprom's and subsidiary license blocks located onshore and on the Russian continental shelf.

The main objective of setting up the specialized company is to improve prospecting and exploration of new fields and hydrocarbon deposits. This is especially significant as Gazprom is focusing on gas producing centers in the regions with a challenging geographical and climatic environment, obtaining more subsurface use licenses and building up its geological exploration activities.

Gazprom geologorazvedka will apply single unified requirements to arranging and performing geological exploration at all of Gazprom's license blocks as well as coordinate the work of contracting companies. The company will take a project-based approach to conducting and financing geological exploration. Gazprom geologorazvedka will place special emphasis on adopting cutting-edge R&D solutions and interacting with corporate and Russian research institutes.

The decision to restructure Gazprom dobycha Krasnoyarsk into a specialized company was also based on a review and a positive evaluation of the Company's experience in performing geological surveys, introducing process solutions and optimizing costs while conducting geological exploration in the Krasnoyarsk Krai's deposits featuring a low exploration level.

Background

Starting from 2005 the Company has been confidently increasing hydrocarbon reserves through geological exploration on an annual basis, which enables to offset production levels. The reserves replenishment shown by Gazprom is steadily above 100 per cent.

In June 2011 the Gazprom Management Committee approved the Gas Industry Mineral Resource Base Development Program until 2035. The Program envisages expanded replenishment of the mineral resource base with due consideration of changes in the reserves structure and a shift of the gas producing centers into new regions: the Yamal Peninsula, Eastern Siberia and the Far East, the Russian continental shelf. Nearly 20 billion tons of fuel equivalent will be built up between 2011 and 2035 through the Program.

Prior to Gazprom geologorazvedka foundation, exploration projects in Russian regions were managed by the Company's relevant subdivisions.

Mikhail Sirotkin, former head of Gazprom dobycha Krasnoyark, is Director General of Gazprom geologorazvedka.