Led by Alexander Ananenkov, Deputy Chairman of the Gazprom Management Committee the Company’s experts accompanied by Alexey Kuzmitsky, Governor of the Kamchatka Krai visited pre-development facilities of the Kshukskoye and Nizhne-Kvakchikskoye gas and condensate fields of Kamchatka, as well as production bases of contracting companies.

During the visit to the fields Alexander Ananenkov held a meeting dedicated to pre-development issues.

Taking part in the meeting were Oleg Aksyutin, Member of the Management Committee, Head of the Gas Transportation, Underground Storage and Utilization Department of Gazprom; heads and experts from Gazprom’s specialized structural units and subsidiaries: Gazprom invest Vostok, Mezhregiongaz, Gazprom gaznadzor and contracting companies.

In his address to the meeting participants, Alexander Ananenkov noted that Gazprom’s resource base formation was a paramount objective within the Kamchatka Krai gasification process. To attain this objective the Company is pre-developing the Kshukskoye and Nizhne-Kvakchikskoye fields on the western coast of the Kamchatka Peninsula.

The meeting underlined that startup and commissioning operations were underway at the startup complex designed to supply natural gas from the Kshukskoye field. The startup complex comprises a comprehensive gas treatment unit (CGTU) capable to intake gas from the field, a production well and engineering structures. In the future, the CGTU will be expanded to receive gas from the Nizhne-Kvakchikskoye field as well. Production wells are being drilled in the field at the moment.

Based on the meeting results, Gazprom’s specialized structural units and subsidiaries were assigned the tasks to arrange gas delivery from the Kshukskoye field to Kamchatkan consumers before long.

Background:

The September 2007 Order by the Russian Federation Industry and Energy Ministry approved the Development Program for an integrated gas production, transportation and supply system in Eastern Siberia and the Far East, taking into account potential gas exports to China and other Asia-Pacific countries (Eastern Gas Program). Gazprom was appointed by the Russian Federation Government as the Program execution coordinator. New gas production centers will be created in Eastern Russia, namely, the Krasnoyarsk, Irkutsk, Yakutia, Kamchatka and Sakhalin centers.

In September 2007 the Russian Federation Government adopted the decision prescribing Gazprom to get involved in the Gasification of the Kamchatka Oblast. Phase 1 – Gas Supply to Petropavlovsk-Kamchatsky project.

As part of the project, Gazprom is engaged in production wells drilling and pre-development of the Kshukskoye and Nizhne-Kvakchikskoye fields on the western coast of the Kamchatka Peninsula. It is projected to annually produce a total of 750 million cubic meters of gas from these fields.