Today within the working visit by Gazprom’s delegation to the Republic of Korea Alexey Miller, Chairman of Gazprom Management Committee and Choo Kangsoo, President – CEO of Kogas signed an Agreement to jointly explore a gas supply project.

The said Agreement was signed as an extension to the Intergovernmental Agreement of Cooperation in the gas sector and the Memorandum of Understanding on natural gas supplies from Russia to Korea between Gazprom and Kogas.

The Agreement envisages the study of gas supply scenarios from the final point of the Sakhalin – Khabarovsk – Vladivostok gas transmission system (GTS) to Korea.

The parties also emphasized a progressive development of the cooperation in the sci-tech and staff training sectors.

Based on the meeting results Alexey Miller noted that the Sakhalin – Khabarovsk – Vladivostok GTS launched by Gazprom would enable both to meet the prioritized gas demand of Russian consumers and to create the necessary prerequisites for extra gas supplies from Russia to new competitive markets – Asia-Pacific countries including the Republic of Korea.

Alexey Miller also had today a working meeting with Lee Youn Hoo, Knowledge Economy Minister of Korea.

The parties stressed the importance of starting regular LNG supplies from Russia to Korea within the Sakhalin II project.

In addition, special attention was paid to the possible interaction between Gazprom and Korean companies as part of the Eastern Gas Program including within gas processing and gas chemical projects in Russia as well as to the cooperation in offshore platform and LNG carrier construction and compressed gas production for Gazprom’s existing and prospective projects.

STX shipbuilding company presented advanced technologies for natural gas marine transportation including in the compressed form.

Background:

On May 12, 2003 Gazprom and Korean Kogas entered into the five-year Cooperation Agreement, which was extended for another five-year term in 2008. The Agreement embraces a wide spectrum of issues including the study of possible ways to deliver Russian natural gas to Korea.

To implement the Agreement the parties set up the standing Joint Working Group.

On October 17, 2006 Seoul saw the signing of the Agreement of Cooperation in the gas industry between the Government of the Russian Federation and the Government of the Republic of Korea, pursuant to which Gazprom and Kogas were identified as authorized companies overseeing natural gas deliveries from Russia to the Republic of Korea.

The Sakhalin – Khabarovsk – Vladivostok gas transmission system is a top priority project of the Eastern Gas Program.

On September 29, 2008 Gazprom and Kogas signed the Memorandum of Understanding on natural gas supplies from Russia to Korea.

On June 15, 2009 the Russian Government Directive was signed granting Gazprom the subsurface licenses for the three blocks of the Sakhalin III project (the Kirinsky, Ayashsky and Vostochno-Odoptinsky blocks) for an unlimited period. Sakhalin III will be the key resource base for the Sakhalin – Khabarovsk – Vladivostok GTS and its subsequent development.

In line with Gazprom’s orders, Russian shipbuilders in cooperation with Korean companies are constructing two platforms to perform drilling offshore operations.