Gazprom resolved to transfer the rights to use the subsurface resources of the Novoportovskoye oil, gas and condensate field and the Eastern block of the Orenburg oil, gas and condensate field to Gazprom neft.

The decision was taken for the purpose of implementing Gazprom’s Oil Business Strategy. A considerable buildup of corporate control due to Gazprom’s stake increase in Gazprom neft up to 95.68 per cent in 2009 made it possible to advance this strategic line of business to a fundamentally new level of development, namely, to start consolidation of activities on Gazprom Group’s oil reserves development within a single subsidiary company, a leader of the domestic oil market. As a result, the Group’s efficiency in the oil business will be raised considerably that will add to further strengthening of Gazprom’s position on the world market as a global energy company.

At present, the Novoportovskoye field is in a high state of readiness for the start-up of pilot commercial operation, while the Eastern block development in the Orenburg field has already commenced.

Background:

Gazprom’s Oil Business Strategy was approved by the Board of Directors on September 27, 2006.

Pursuant to the Strategy, Gazprom will achieve the production level of 80 million tons per annum by 2020.

In order to achieve this production level, the Company is planning to work in the following fields:

- phased development of all the proven oil fields of Gazprom neft (with due regard of the company’s stakes in joint ventures);

- commencement of Gazprom’s reserves development;

- resource base expansion.

In September 2009 the Board of Directors meeting of Gazprom neft considered and approved the development strategy for the Exploration and Production Block of Gazprom neft until 2020. According to the strategy, Gazprom neft is going to increase the annual volume of hydrocarbons production up to 100 million tons of fuel equivalent by 2020, taking into account all the subsidiaries, Gazprom’s fields, resource base expansion and new acquisitions in Russia and abroad.

The Novoportovskoye oil, gas and condensate field is located in the Yamal-Nenets Autonomous Okrug. Its recoverable ABC1+C2 reserves average 265 billion cubic meters of natural gas, 238 million tons of oil and 13 million tons of condensate. Gazprom dobycha Nadym (Gazprom’s 100 per cent subsidiary) holds the subsurface use license.

The Orenburg oil, gas and condensate field is situated in the Orenburg Oblast. The recoverable ABC1+C2 reserves of its Eastern block average 52 billion cubic meters of natural gas, 96 million tons of oil and 2 million tons of condensate. Gazprom neft Orenburg (former Stimul), a subsidiary of Gazprom, holds the subsurface use license. The company’s equity capital is fully-owned by the Gazprom Group member companies.