The Management Committee appraised the Investment Program implementation in 2010 and in the first quarter of 2011. Specialized structural units were tasked to continue the 2011 Investment Program execution.

In the course of the meeting it was highlighted that the Company's activity on the program implementation in 2010 had been efficient and ensured the planned level of reserves replenishment, reliable operation of gas production, transmission and underground storage facilities. Prioritized projects were successfully implemented.

Background

The Investment Program of Gazprom stated RUB 905.23 billion for 2010 including RUB 751.84 of capital investments and RUB 153.39 of long-term financial investments.

According to the 2010 Investment Program the gas production priorities were the Bovanenkovo and Shtokman fields pre-development as well as the Apt-Albian deposits of the Nyda area in the Medvezhye gas and condensate field, the Zapadno-Pestsovaya area in the Urengoy oil, gas and condensate field, the Yamburg gas and condensate field including the Kharvutinskaya area, the Zapolyarnoye, Urengoy and other fields.

In the gas transmission sector top priority was given to construction of the Bovanenkovo – Ukhta gas trunkline system, the Gryazovets – Vyborg, Pochinki – Gryazovets, Zapolyarnoye – Urengoy and Dzhubga – Lazarevskoye – Sochi gas pipelines.

As part of the Eastern Gas Program, the 2010 Investment Program prioritized the Sakhalin – Khabarovsk – Vladivostok, Sobolevo – Petropavlovsk-Kamchatsky gas trunklines construction, the Kshukskoye and Nizhne-Kvakchikskoye fields pre-development.

The 2010 Long-Term Financial Investment Plan focused on Gazprom's participation in the Shtokman and Prirazlomnoye fields development and operation as well as the Nord Stream and South Stream projects implementation.

Pursuant to the 2011 Investment Program, the total amount of investments will make up RUB 816.363 billion, capital investments – RUB 729.865 billion and long-term financial investments – RUB 86.498 billion.

The 2011 Investment Program was compiled with due consideration of the preset deadlines for the paramount investment projects of fundamental significance for the development of Gazprom and the entire country.

The key gas production projects in 2011 involve pre-development of the Bovanenkovo field, the Apt-Albian deposits of the Nyda area in the Medvezhye gas and condensate field, the Achimov deposits in the Urengoy oil, gas and condensate field, and other fields.

In the gas transmission sector the priority is given to the following projects: construction of the Bovanenkovo – Ukhta and Ukhta – Torzhok gas trunkline systems, the Gryazovets – Vyborg, Pochinki – Gryazovets, SRTO – Torzhok gas pipelines.

The 2011 Investment Program stipulates allocation of funds for projects implementation in Eastern Russia, particularly for construction of the Sakhalin – Khabarovsk – Vladivostok gas transmission system and the gas pipeline to convey gas from the Kirinskoye field to the main compressor station of the Sakhalin – Khabarovsk – Vladivostok gas transmission system as well as for development of the Kshukskoye, Nizhne-Kvakchikskoye and Kirinskoye fields.

The funds will also be allocated for retrofitting of the major gas production and transmission facilities, re-equipment of underground gas storage facilities, construction and reconstruction of gas processing facilities, exploration and prospecting, production drilling in fields.

Moreover, the document allocates funds for the Company's projects implementation as part of the Program approved by the Russian Federation Government and aimed at construction of the Olympic venues and development of Sochi as a mountain-climatic resort.

The 2011 Long-Term Financial Investment Plan stipulates, inter alia, Gazprom's participation in the Shtokman and Prirazlomnoye fields development as well as the Nord Stream and the South Stream gas pipelines construction. It is also planned to allocate funds for power generation projects implementation including the Adler CHPS construction.

Projects financing in the Republic of Vietnam, Africa and Latin America is stipulated as well.