Today at the Gazprom Headquarters Alexey Miller, Chairman of the Gazprom Management Committee, Dmitry Konov, President of Sibur Holding, Andrew Liveris, President, Chief Executive Officer and Chairman of the Dow Chemical Company have signed a Memorandum of Intentions in the area of high-value added hydrocarbon processing.

The document stipulates examination of prospects to set up a joint venture based on new petrochemical production facilities of the Dow Chemical Company in Germany, joint natural gas processing in the Valanginian deposits of the Yamal-Nenets Autonomous Okrug as well as examination of cooperation opportunities in other sectors.

The parties will create a working group to preliminary evaluate economic feasibility to set up a joint venture and to prepare a draft agreement for further joint technical and economic research.

Reference:

SIBUR Group is the largest vertically integrated petrochemical holding company in Russia that includes OAO SIBUR Holding, OAO AK SIBUR and OOO SIBUR.

The Group includes 34 enterprises, which process the major volume of Russian hydrocarbons via the integrated technological chain ranging from initial processing to manufacturing final products for consumers. The executive functions are exercised by the management company OOO SIBUR.

OAO SIBUR Holding is part of the Gazprom Group. SIBUR Holding turnover in 2006 was RUR 121.9 bln, with net income of RUR 21.4 bln.

The Dow Chemical Company is the largest chemical company in the USA operating in more than 175 countries. The Company produces chemical products, packaging and agricultural products. In 2006 Dow annual sales and net profit exceeded USD 49.1 bln and USD 3.7 bln, respectively.

In pursuance of the Memorandum within the examination of the issue related to participation in extraction of light hydrocarbon mixtures in the Valanginian deposits of the Yamal-Nenets Autonomous Okrug and its processing at the petrochemical large capacity complexes in the territory of the Russian Federation. The Dow Chemical Company, Gazprom and SIBUR Holding will examine an opportunity to set up a joint venture.