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GAZPROM

January 25, 2012

Prirazlomnoye field development to secure additional tax revenues for Nenets Autonomous Okrug

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

The meeting addressed the progress with the Agreement of Cooperation and paid special attention to Gazprom's participation in the socioeconomic development of the region.

It was emphasized that the Company was at the moment engaged in startup operations at the Prirazlomnaya offshore ice-resistant stationary platform as part of the project for developing the Prirazlomnoye oil field on the Pechora Sea shelf. Preparations are being made for drilling of the first production well. In the nearest future a shift workers' camp will be commissioned at the transshipment terminal in the Varandey settlement.

Alexey Miller emphasized that the field pre-development facilities, the platform and the transshipment base, would be registered in the NAO and the tax revenues would be a robust source of the regional budget replenishment.

The meeting also considered the issues regarding compilation of the General Scheme for Gas Supply and Gasification of NAO by Gazprom Promgaz highlighting that the work would be done in the second half of 2012.

In addition, the Management Committee Chairman and the NAO Governor paid attention to social support for local population by Gazprom. They mentioned that the Company was a traditional participant of the projects aimed at social development of the Nenets Autonomous Okrug. Thus, in 2012 Gazprom is planning to allocate funds for construction of a kindergarten that would receive 80 children in the Ust-Kara settlement.

Background

Gazprom and the Nenets Autonomous Okrug Administration signed the Agreement of Cooperation 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 regional population centers.

The Prirazlomnoye oil field is located 60 kilometers off the Pechora Sea shore on the continental shelf within the administrative area subordinated to the NAO. It contains 72 million tons of oil reserves. The field is vitally important for the oil business development strategy of Gazprom Group.

 

 

 

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