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GAZPROM

December 22, 2003

The 3rd stage of the Zapolyarnoe field commissioned

On the 19th of december, the 3rd gas complex treatment unit (UKPG – 3S) was launched at the Senoman reservoir of the Zapolyarnoye oil and gas condensate field. First commercial gas was pumped from the UKPG–3S into the Zapolyarnoye – Novy Urengoy gas main pipeline at 10:05 a.m., local time.

At present, the UKPG–3S serves 24 wells producing 20 million cubic meters of natural gas per day. By the yearend, the UKPG–3S is expected to provide production of up to 200 million cubic meters of gas. In the first quarter of 2004, daily gas production will attain some 60 million cubic meters.

The UKPG–3S will reach its annual design capacity of 32.5 bcm in the third quarter of 2004.

Reference:

The Zapolyarnoye field was discovered in 1965, 200 km off the town of Novy Urengoy (the Yamal-Nenets Autonomous Area). First gas was produced here on October 1, 2001. The 1st gas complex treatment unit (UKPG – 1S) with an annual capacity of 35 bcm was solemnly brought into operation on October 31, 2001. In October-November 2001, gas production at the Zapolyarnoye field totaled 7.1 bcm. In 2002, gas production amounted to 36.8 bcm.

The 2nd gas complex treatment unit (UKPG – 2S) was put on stream in December 2002. In the 3rd quarter of 2003, the UKPG– 2S reached its annual design capacity of 32.5 bcm.

Gazprom plans to produce over 67 bcm of gas at the Zapoyarnoye field this year; current daily gas production at the field accounts for 215-220 million cubic meters.

By 2005, commissioning of all the three UKPGs (1S, 2S and 3S) will enable Gazprom to build up the Zapolyarnoye field’s design capacity up to 100 bcm per year.

On November 11, 2003, at 4:00 p.m., local time, Gazprom produced 100 bcm of natural gas at the Zapolyarnoye field.

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