Today, at the Gazprom Headquarters, Alexander Ananenkov, Deputy Chairman of the Gazprom Management Committee conducted the meeting on implementation of synchronized Exploration, Engineering and Construction Schedule aimed at executing an Investment Project to provide gas supply and gasify the Irkutsk Oblast’s top priority facilities.

The meeting was attended by heads and specialists of Gazprom, Irkutskgazprom, Tomsktransgaz, Mezhregiongaz as well as Promgaz core business units.

The participants discussed the progress with the Schedule stipulating gas supply to regional top-priority consumers in 2007. Special attention was paid to the implementation of the project work with due regard of modern technologies providing reliability and ecological security of gas transmission systems as well as negotiations with independent subsoil users and potential regional gas consumers.

At the end of the meeting, Gazprom’s core business units and subsidiaries were tasked with continuing the execution of the Schedule as part of the General Scheme of Gas Supply to and Gasification of the Irkutsk Oblast in cooperation with the regional authorities.

Additionally, the core business units were entrusted with preparing proposals on development of the NG and NGV fueling stations in the Irkutsk Oblast including the development of a Program to convert motor vehicles and agricultural equipment to natural gas and LNG.

Reference:

The Agreement on cooperation between Gazprom and the Irkutsk Oblast Administration was signed in February 2004. The Agreement on gasification was signed in December 2005.

The General Scheme of Gas Supply to and Gasification of the Irkutsk Region was approved by the Decree of the Irkutsk Region’s authorities on December 28, 2005. The Scheme contemplates establishing in the Region a comprehensive system of gas production, transmission and supply based on local hydrocarbon resources. The General Scheme prescribes providing gas supply to and gasification of the northern Irkutsk Region from existing medium- and small-sized fields. At an initial stage, the demand of consumers from the southern part of the Region is satisfied by gas from the South Kovykta field.

The General Scheme enables to supply gas to 899 population centers in 32 areas of the Irkutsk Region and prescribes constructing gas mains, pipeline branches and distribution networks as well as shaping and developing the Regional gas market. Gazprom has been appointed as the General Scheme implementation operator. First gas deliveries to the Region are planned in 2007.

Gazprom is the licensee for the subsurface resources at the Western and Eastern sections of the South Kovykta field.

In September 2006, within the General Scheme implementation of Gas Supply to and Gasification of the Irkutsk Region, Gazprom and ITERA Oil & Gas Company have inked a Memorandum of cooperation regarding gas from the Bratsk gas and condensate field in the Irkutsk Oblast. In particular, the document stipulates that ITERA is committed to bringing onstream the Bratsk gas & condensate field as a hydrocarbon feedstock source for the regional gasification to 2008. The license for the field is held by Bratskecogas, a subsidiary of ITERA. Gas will be sold to Gazprom on the agreed terms.

In November 2006, Gazprom and the Irkutsk Oil Company signed the Memorandum for cooperation on issues on gas of the Markovskoye oil & gas condensate and Ayanskoye gas fields in the Irkutsk Oblast. In accordance with the document, Irkutsk Oil Company and its affiliated and dependent companies will sell to Gazprom natural gas of the Markovskoye oil & gas condensate and Ayanskoye gas fields.

On December 20, 2006, the Board ordered to include in Gazprom’s 2007 budget not less than RUR 20.2 bln (RUR 8 bln up on previous projections) for the Program implementation purposes. Increased investments will enable to incorporate the Program 5 more RF constituents including the Irkutsk Oblast, Altai Republic, Dagestan, Karelia and Yamal-Nenets Autonomous Okrug.