Alexey Miller, Chairman of the Gazprom Management Committee and Viktor Ishaev, Minister for the Russian Far East Development, Presidential Plenipotentiary Envoy to the Far Eastern Federal District signed an Agreement of Cooperation today at the Gazprom headquarters.

The signed document is primarily aimed at creating favorable conditions for social and economic development of the Far Eastern Federal District as well as the Eastern Gas Program implementation.

The document prioritizes a secured level of the hydrocarbons feedstock production in the Far Eastern Federal District with preference given to supplying Russian consumers with natural gas. Development and introduction of innovations in gas and oil (including associated petroleum gas) exploration, production, treatment and processing will become another important area of cooperation.

The Agreement puts emphasis on the environmental safety of the Far Eastern projects as well as on environmental protection activities.

The Ministry for the Development of the Russian Far East will assist Gazprom in implementing gas production, transmission, processing and supply projects in the Far Eastern Federal District, namely, by creating a congenial investment climate.

Gazprom, on its part, will carry on building gas production centers in the Far Eastern Federal District: the Republic of Sakha (Yakutia), the Sakhalin Region and the Kamchatka Territory. Simultaneously with gas production centers and the unified gas transmission system, gas processing and gas chemical facilities will evolve, including helium and liquefied natural gas production capacities. The Company will continue the gasification of Far Eastern regions with due consideration for the economic development and gas consumption outlook.

Pursuant to the Agreement, the parties will develop the transmission and communication networks in Far Eastern regions where the Company operates. Other joint activities include shared construction and maintenance of motorways built as part of the gas field or gas trunkline infrastructure.

Gazprom and the Ministry for the Development of the Russian Far East will take part in social construction activities, inter alia, within top-priority national projects. Besides, Gazprom will enable the students from Far Eastern universities to compete for scholarships in specialties demanded by the Company's subsidiaries. Gazprom will provide employment assistance on a priority basis to specialists with industry specific education.

The Agreement is effective throughout 2018.

Background

The state-run Eastern Gas Program was approved by the September 2007 Order of the Russian Industry and Energy Ministry. Gazprom was appointed by the Russian Government as the Program execution coordinator.

The Far Eastern Federal District comprises the Amur, Magadan and Sakhalin Regions, the Jewish Autonomous Region, the Kamchatka, Primorye and Khabarovsk Territories, the Chukotka Autonomous Area and the Republic of Sakha (Yakutia).