Offshore staff

(Russia) – Gazprom's management committee has approved major provisions of Gazprom's program for Russian Federation offshore hydrocarbon resources exploration up to 2030.

Business units were entrusted with registering Gazprom's licenses for 2005 to 2006 for the Severo-Kamennomysskoye, Kamennomysskoye-Sea, Obskoye and Dolginskoye fields development.

The management committee issued a directive to secure Gazprom's participation between 2005 and 2006 in biddings for the licenses to explore prospects located in the Ob and Taz Bays offshore.

In 1Q/2006, Gazprom's core business outlets together with VNIIGAZ Ltd and Gazflot Ltd will submit for approval their 2006 to 2010 plans for Gazprom's hydrocarbon E&P activities in the Russian Federation offshore.

The JSC Gazprom program through 2030 has been developed in compliance with the management committee's Nov. 27, 2003 Directive on the Conception of Gazprom's operations on the Russian Federation continental shelf.

The initial total hydrocarbon resources of Russia's continental shelf average 100 billion tons of fuel equivalent, of which 80% is gas. The bulk of the reserves are concentrated in the Barents, Pechora and Kara Seas, with gas and condensate prevailing in the Barents and Kara, and oil in the Pechora Sea.

Implementing a geological exploration program between 2005 and 2030 will aid in increasing Arctic offshore reserves by over 14 tcm of gas and 500 million tons of oil.

A prime development target in the Barents Sea, the Shtokman gas and condensate field is being prepared for operation to produce liquefied natural gas for international markets.

Due to the substantial resource potential, onshore transmission infrastructure availability, small sea depths and distances to the shore, the Ob and Taz Bays fields were identified as top priority gas production areas in the Kara Sea.

The rate of return for the program is expected to be for 17.2%.

10/05/05