A Gazprom Board of Directors’ meeting has commenced at the Company’s Headquarters.

The Board of Directors addressed the Company’s natural gas production prospects up to 2020 and tasked the Management Committee with ensuring the implementation of long-term production schedules.

Reference:

Gazprom pursues the strategic goal of increasing natural gas production.

Between 2001 and 2007 the Company took into operation the Zapolyarnoye, Vyngayakhinskoye, En-Yakhinskoye, Ety-Purovskoye, Pestsovoye, Yuzhno-Russkoye fields, Aneryakhinskaya and Kharvutinskaya areas of the Yamburgskoye field, Tab-Yakhinsky prospect of the Urengoyskoye field, which enabled to boost natural gas production from 512 to 548.6 bcm.

The current outlook for the domestic and foreign gas markets development as well as the Gazprom Group’s existing resource base allow the Company to plan natural gas production at 570 bcm by 2010, 610-615 bcm by 2015 and 650-670 bcm by 2020 (including production in eastern Russia).

Over 2008 to 2010 natural gas production will be maintained via existing and new fields in the Nadym-Pur-Taz region. In particular, there are plans to bring the Yuzhno-Russkoye field and Kharvutinskaya area of the Yamburgskoye field to full capacity and increase natural gas production from the Cenomanian deposits of the Zapolyarnoye field. In 2008 Gazprom intends to start developing two blocks of the Achimov deposits in the Urengoyskoye field. In addition, the Company plans to launch operations in the Zapadno-Pestsovoye field, Nydinskaya area of the Medvezhye field, Lower Cretaceous deposits of the Zapolyarnoye and Pestsovoye fields.

The development of promising fields is projected in combination with the comprehensive synchronous development of natural gas production, transmission, processing and storage facilities.

In particular, the Urengoy gas transmission hub expansion and SRTO – Torzhok gas trunkline construction are planned to be completed in order to withdraw additional gas from the Nadym-Pur-Taz region. So far, over 2600 km of gas linepipes and 9 additional compressor station shops have been commissioned as part of the progressing work.

In addition, work is underway as part of the Comprehensive Program for the reconstruction and technical re-equipment of gas transmission facilities and UGS compressor stations for 2007 to 2010 and the Comprehensive Program for the reconstruction and technical re-equipment of gas production facilities up to 2010.

After 2010 projected gas extraction will be secured via further production growth in the Nadym-Pur-Taz region, commissioning of the Bovanenkovskoye field (Yamal Peninsula) in 2011 and Shtokman field in 2013, development of new offshore fields in the Ob and Taz Bays, Eastern Siberia and the Far East.

By 2020 new fields will account for around 50 per cent of Gazprom Group’s natural gas production.