Gazprom’s Management Committee took notice of the information regarding the activities done by the Company to develop the mineral resource base needed to gasify the Eastern Siberian and the Far Eastern regions.

The core business units were assigned with continuing the work aimed at obtaining the licenses for the right to use the subsurface resources of Eastern Siberia and the Far East, as well as securing geological exploration and preparation for commercial development of hydrocarbon reserves at the licensed blocks owned by Gazprom and its subsidiaries in these regions.

The meeting emphasized that execution of the decisions taken by the Russian Federation Government at the Vladivostok meeting of September 1, 2008 had a crucial meaning for developing the Gazprom mineral resource base intended to gasify the Far Eastern Federal District (FEFD) regions.

The Gazprom core business units and subsidiaries were entrusted with maintaining gas supplies to Petropavlovsk-Kamchatsky until late 2010, constructing the Sakhalin – Khabarovsk – Vladivostok gas transportation stratup complex in the 3rd quarter of 2011. The core business units were also entrusted with preparing materials to address the issue: “On the Mineral Resource Base Development Necessary for the Eastern Siberian and the Far Eastern Regions Gasification” at a Board of Directors’ meeting.

Background:

The Program for the gas industry’s mineral resource base development up to 2030 currently implemented by Gazprom stipulates meeting the strategic goal of accumulating gas reserves in Eastern Russia in order to supply gas to Eastern Siberian and Far Eastern regions and to create the “Eastern Stream” for gas export to Asia Pacific.

A low exploration extent of the Eastern Siberian and the Far Eastern gas reserves (7.4 per cent for the onshore area and 5.9 for the shelf), favorable geological preconditions for discovering large hydrocarbon fields point to high opportunities for reserve build-up and gas production in these regions. The Eastern Russia reserves enable to establish new large oil and gas production centers that would meet regional demands and secure export deliveries to Asia Pacific for the long term.

As of October 1, 2008 Gazprom, its subsidiary and affiliated companies hold 45 licenses for the right to use subsurface resources in Eastern Siberia and the Far East including the Chayanda oil and gas condensate field in Yakutia, Chikanskoye gas and condensate field in the Irkutsk Oblast, Sobinskoye oil and gas condensate field in the Krasnoyarsk Krai and Kirinskoye gas and condensate field offshore Sakhalin Island.

Pursuant to the Russian Federation Government’s decisions taken at the September 1, 2008 circuit meeting in Vladivostok the Russian Natural Resources Ministry and the Federal Subsurface Use Agency were assigned with resolving before the end of 2008 the issue of granting to Gazprom the rights to use subsurface resources of the Kirinsky, Vostochno-Odoptinsky and Ayashsky blocks of the Sakhalin III project, as well as of the Zapadno-Kamchatsky prospect located in the Okhotsk Sea offshore area.

Gazprom is performing geological exploration in the Krasnoyarsk Krai and Irkutsk Oblast, and has arranged preparation for geological exploration in the Republic of Sakha (Yakutia), the Kamchatka Krai and the Sakhalin Island offshore.

Pursuant to the 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 Asia Pacific with Gazprom appointed by the Russian Federation Government as the Program execution coordinator, it is planned to increase the reserves base up to 7 tcm of gas by 2030.