In view of the continuously expanding operations performed by Gazprom in the Sea of Okhotsk shelf, the Company took the decision to relocate Gazprom Dobycha Shelf to Yuzhno-Sakhalinsk and rename it as Gazprom Dobycha Shelf Yuzhno-Sakhalinsk. The subsidiary will be focused on the development of Gazprom's fields in the Sea of Okhotsk shelf.

For operations in the Barents Sea, including within phases 2 and 3 of the Shtokman project, a new subsidiary – Gazprom Dobycha Shelf Murmansk – will be established in Murmansk.

Background

Set up in 2008, Gazprom Dobycha Shelf (a wholly owned subsidiary of Gazprom) specializes in the development of offshore gas and condensate fields. The company develops the Kirinskoye field and operates phases 2 and 3 of the Shtokman field. Gazprom Dobycha Shelf is registered in Moscow and has representative offices in Murmansk, Yuzhno-Sakhalinsk and Saint Petersburg.

Gazprom consecutively develops its resource base and production capacities in the Sea of Okhotsk. In 2013 the first gas was produced from the Kirinskoye field as part of the Sakhalin III project. Russia's first subsea production system is installed at the field. This year commercial gas production will be launched there. Geological exploration is underway at the large Yuzhno-Kirinskoye field, the Ayashsky and Vostochno-Odoptinsky blocks of the Sakhalin III project.

Gas resources of the Sakhalin III project are estimated at around 1.1 trillion cubic meters, with the bulk of them concentrated in the Kirinsky block. C1 reserves of the Kirinskoye field amount to 162.5 billion cubic meters of gas and 19.1 million tons of gas condensate. C1+C2 reserves of the Yuzhno-Kirinskoye field currently amount to 563.9 billion cubic meters of gas and 71.7 million tons of gas condensate.