The Gazprom headquarters hosted today a working meeting between Alexey Miller, Chairman of the Company's Management Committee and Igor Fyodorov, Head of the Nenets Autonomous Okrug Administration.

The meeting addressed the Cooperation Agreement execution. Special attention was paid to Gazprom's production base development in the Okrug and to the Prirazlomnoye oil field development project in particular.

The parties also looked at the regional gasification issues. It was stressed that Gazprom would elaborate the General Gas Supply and Gasification Scheme for the Nenets Autonomous Okrug in 2011.

Background

Gazprom and the Nenets Autonomous Okrug Administration signed the Cooperation Agreement in November 2006 and the Gasification Accord in December 2010.

The Nenets Autonomous Okrug has a local gas supply system. Pechorneftegazprom (with a 50 per cent stake held by Gazprom transgaz Ukhta, a wholly-owned subsidiary of Gazprom) is the only gas supplier to the regional population centers.

The Prirazlomnoye oil field is located near the Nenets Autonomous Okrug on the Pechora Sea shelf at the distance of 60 kilometers from the shore. The field holds 72 million tons of oil reserves. Developing the Prirazlomnoye field is a crucial component of the oil business development strategy in Gazprom Group. The field is to become operational in 2011.