Today in the town of Mirny, Alexey Miller, Chairman of Gazprom Management Committee took part in the meeting dedicated to the progress in implementing the assignments by the Russian Federation Government and President with regard to the Republic of Sakha (Yakutia) socio-economic development. The meeting was held under the leadership of Vladimir Putin, Russian Prime Minister.

Addressing the meeting, Alexey Miller reported on the work done by Gazprom to create the Yakutia Gas Production Center within the Eastern Gas Program execution. In particular, he noted that timely granting of the subsurface rights for the Chayanda field by the Russian Government made it possible for Gazprom to start its development in a prompt manner. Gazprom has elaborated the relevant development plan. Performing all the works in lockstep is the top-priority objective that will help the Company successfully meet the assumed obligations.

At present, two exploratory wells are being drilled, 2D and 3D seismic survey, scheduled for the winter of 2009 is at the initial preparatory stage. Engineering-geological studies and geodesic survey have been done. Development of the oil rim and gas deposit is to be started in 2014 and 2016 accordingly.

Gas from the Chayanda field has a complicated composition with a high content of helium – a valuable component for high technologies advancement. In this context, Gazprom is performing a comprehensive study of the opportunities to create gas chemical and gas processing facilities using natural gas from the Chayanda field. The locations of these facilities and underground helium storages are being considered with due regard of the options proposed on the part of the Sakha (Yakutia) Republic.

In 2010 Gazprom will finalize the Investment Concept for gas chemical facilities deployment in Eastern Siberia and the Far East, as well as the Reservoir Management Plan for the Chayanda oil and gas condensate field development.

At the same time, Chairman of Gazprom Management Committee emphasized that the Chayanda field was being developed in a harsh climatic environment with no relevant infrastructure, and this called for considerable capital costs.

“Oil companies operating in the region have obtained tax allowances. The identical measures should be taken to ensure efficient gas fields development in eastern Russia. Therefore, it is crucial to define, as early as in 2009, the measures of state support for gas investment projects being executed in Eastern Siberia and the Far East. These may include, inter alia, “tax holidays” over the project's payback period and reduction/abolition of export tariffs on extracted gas,” stated Alexey Miller.

To ensure the injection of Yakutia’s gas into the gas transportation system by 2016, it is necessary to construct the Yakutia – Khabarovsk – Vladivostok gas trunkline by that period. The gas pipeline will provide the penetration of Yakutia’s gas into the southern regions of the Far Eastern Federal District and into the Pacific coastal areas. Gazprom will set to constructing the gas pipeline in 2012 upon completion of the Sakhalin – Khabarovsk – Vladivostok gas transmission system.

“The gas production forecast has been updated according to the follow-up data obtained during operations at the Chayanda oil and gas condensate field. In this regard, its is necessary to resolve the issue of granting Gazprom in 2009 the subsurface rights for Yakutia’s Srednetyungskoye, Taz-Yuryakhinskoye, Sobolokh-Nedzhelinskoye and Verkhnevilyuchanskoye fields in order to ensure an optimal loading of the Yakutia – Khabarovsk – Vladivostok gas transportation system. This is especially significant as helium is only found in some of the fields and

Yakutia's gas may be delivered to the market simultaneously,” pointed out Chairman of Gazprom Management Committee.

“Gazprom’s proactive efforts aimed at creating the Yakutia Gas Production Center made it possible to create conditions for rapid socio-economic development in the region, boost production activities and improve the living standards in Yakutia. New workplaces will be created, the employment rates will increase and social stability will be ensured for a long-term period,” underlined Alexey Miller summing up his speech.