Sochi witnessed today the opening of the meeting dedicated to the more efficient management of Gazprom’s major production assets.

The meeting is chaired by Vasily Podyuk, Member of the Management Committee and Head of the Gas, Gas Condensate and Oil Production Department, Gazprom. Participating in the meeting are experts of the core business divisions of Gazprom and its subsidiaries: Gazprom VNIIGAZ, Gazprom Central Design Oil Equipment Bureau, NIIgazekonomika, SevKavNIPIgaz, Kubangazprom, Gazprom dobycha Astrakhan, Gazprom dobycha Nadym, Gazprom dobycha Noyabrsk, Gazprom dobycha Orenburg, Gazprom dobycha Urengoy, Gazprom dobycha Yamburg, Gazprom pererabotka, Gazprom podzemremont Orenburg, Gazprom podzemremont Urengoy, Gazprom energo, Gazprom gazobesopasnost, Orgenergogaz.

Opening the meeting, Vasily Podyuk emphasized that the growth of Gazprom’s technical and economic potential was directly dependent on the development of gas production capacities on the basis of major assets. The aggregate performance of assets, their status, technical level and degree of utilization directly influence the hydrocarbon production level.

For the purpose of meeting its liabilities for gas supply to Russian and foreign consumers, Gazprom plans to increase gas production within the UGSS area up to 650-670 bcm by 2020. Timely execution of Gazprom’s large-scale projects with regard to creating new gas production centers in the Yamal offshore, Eastern Siberia and the Far East will enable to secure the scheduled production level.

Efficient development of new gas provinces demands optimizing major asset management in order to reduce field operational and maintenance costs. In this context, it is necessary to arrange for major asset management, taking into account lifecycle of fields, development and application of approaches that would help achieve an ideal balance between capital expenditures and replacement of run-down major assets by new ones. The Company needs to balance the combination of monetary and production approaches towards better management of major assets.

To achieve this goal Gazprom is implementing the Comprehensive Program for the reconstruction and technical re-equipment of gas production facilities to 2010, the Program for repair of field wells for 2006 to 2010. Work has been initiated to develop a 2011-2015 program dedicated for the repair of well at Gazprom’s fields including UGS facilities.

“The program under development should embrace the entire field and UGS well stock of Gazprom, the entire complex of geological and technical activities performed at wells,” highlighted Vasily Podyuk.

The meeting also listened to presentations on better major assets management, companies’ plans concerning the decommissioning and conservation of gas production facilities for the 2009-2011 triennial period, organization of insurance support for the major production assets of the Company and its subsidiaries.

Based on the meeting results the Gazprom core business units and subsidiaries were entrusted with the relevant tasks.

The meeting will last till October 11. The meeting program includes the following presentations: “On the status of Gazprom’s well stock and the tasks of its efficient utilization”, “Diagnostic maintenance of gas production facilities”, “Managing major assets of gas production subsidiaries with regard of structural and compensation approaches”.