Gazprom Management Committee took into consideration the information with regard to pre-developing the Cenomanian-Aptian deposits of the Bovanenkovo field as well as constructing the Bovanenkovo – Ukhta gas trunkline system and the new Obskaya – Bovanenkovo railroad.

The meeting noted that the global financial crisis had a negative impact on the domestic and foreign gas demand as well as on the consumption forecast over the next years. Taking into consideration that Gazprom’s business is market-oriented, the Management Committee resolved to postpone the commissioning of the first startup complexes of the Bovanenkovo field and the Bovanenkovo – Ukhta gas trunkline system from the third quarter of 2011 to the third quarter of 2012.

Taking into consideration the above mentioned information, Gazprom specialized subdivisions were tasked to prepare the updated schedule for stagewise and synchronized commissioning of gas production and transportation facilities including the SRTO-Torzhok GTS expansion with due regard of annual production dynamics at the Bovanenkovo field, starting from the third quarter of 2012.

The Management Committee also tasked Gazprom subsidiaries to modify the comprehensive procurement and construction schedules within the investment projects for pre-development of the Cenomanian-Aptian deposits of the Bovanenkovo field and construction of the Bovanenkovo – Ukhta gas trunkline system in order to secure the first phase of the construction in the third quarter of 2012.

Background:

In January 2002 Gazprom Management Committee identified the Yamal Peninsula as a region of the Company’s strategic interest. The commercial development of Yamal fields will increase local gas production to 310-360 billion cubic meters per annum by 2030. Accessing Yamal is of utter importance for the purpose of ensuring gas production growth in Russia.

The Cenomanian-Aptian deposits of the Bovanenkovo field are a paramount development target on the Yamal. It is anticipated to increase the projected gas production at the Bovanenkovo field from the current 115 to 140 billion cubic meters per annum in the long-term.

In order to deliver the Yamal gas to the Unified Gas Supply System of Russia, it is necessary to build before 2030 a new-generation gas transportation system with the total length of 2,500 km including the new 1,100-km-long Bovanenkovo – Ukhta gas transportation corridor.

In October 2006 Gazprom Management Committee addressed the results of the Investment Rationale for the Bovanenkovo field development on the Yamal Peninsula and gas transportation and ordered to initiate the investment stage of the Bovanenkovo field development and gas main network construction.

Gazprom specialized divisions were entrusted with ensuring in the third quarter of 2011 the commissioning of the first startup complexes to pre-develop the Cenomanian-Aptian deposits of the Bovanenkovo field rated at least at 15 billion cubic meters of gas, as well as of the Bovanenkovo – Ukhta gas trunkline system.

In 2008 Gazprom set to drilling production wells at the Bovanenkovo field and constructing the Bovanenkovo – Ukhta gas trunkline system.

At present, the top-priority vital, industrial and transport infrastructure facilities and industrial bases are nearing completion, the gas production and treatment sites are almost ready. Three wells have been constructed and drilling facilities are being installed.

Over 300 km of the Bovanenkovo – Ukhta linear part has been built including 40 km of the most challenging pipeline section – the submerged crossing via the Baidarata Bay.

The Obskaya – Bovanenkovo railroad is being built ahead of schedule.

In March 2009 the most difficult part – the bridge crossing through the first bottom of Yuribey – was finished. Currently, 360 km the Obskaya – Bovanenkovo railroad are fully operational (the total length of the railroad will account for 525 km).