The Gazprom Management Committee addressed the information relevant to efficiency of costs on geological exploration and acquisition of subsurface use licenses between 2005 and 2010.

The meeting appraised the work done highlighting that Gazprom had discovered 18 fields and 50 deposits of oil and gas over the said period. The aggregate reserves increment amounted to 3.585 billion tons of fuel equivalent including 3.356 trillion cubic meters of natural gas.

Out of the above stated amounts, 613.3 million tons of fuel equivalent including 547 billion cubic meters of gas and 66.3 million tons of liquid hydrocarbons were added in 2010 and the reserves growth rate accounted for 108 per cent.

The specialized structural units of Gazprom were tasked to ensure efficient use of costs on geological exploration and subsurface use licenses acquisition over 2011 to 2013. For instance, the efficiency will be reached through optimized methods of hydrocarbon fields prospecting and geological exploration streamlining.

Background

In October 2010 the Gazprom Management Committee approved the Program for geological exploration in Russia and abroad over 2011 to 2013.

Geological exploration programs are developed with due regard to the geological exploration strategies ensuring:

pre-treatment of hydrocarbon reserves at Gazprom's licensed blocks located within the operating area of the Unified Gas Supply System;

establishment of a resource base for new gas production centers in eastern Russia in the aim of implementing the state-run Eastern Gas Program;

pre-treatment of hydrocarbon reserves in Russia's offshore areas in order to achieve the strategic targets provided for in the Program for the gas industry's mineral resource base development until 2030;

compliance with obligations related to international projects.

Starting from 2005 Gazprom has been confidently adding hydrocarbon reserves through geological exploration on an annual basis, which enables to offset production levels. The gas reserves growth rate is steadily higher than 100 per cent.

Gazprom performs geological exploration in Russia and abroad (Vietnam, India, Venezuela, Libya, Algeria, Uzbekistan, Tajikistan and Kyrgyzia). In a number of countries of Asia, North and Central Africa, Central and South America the Company carries out intensive research, licensing and pre-investment activities.