The Gazprom Management Committee adopted a new gas production strategy up to 2010. According to this strategy, the Yamal Peninsula, Ob and Taz Bays as well as the Arctic shelf will play a major part in building up gas production.
Field pre-development layout of Ob & Taz Bays and Yamal Peninsula offshore area
Dresdner Kleinwort Wasserstin investment bank was authorized by Gazprom as a financial consulting agency for selling media assets and appraising the Gazprom-Media assets.
The 4th International Professional Exhibition Energy Saving 2002 was opened in Expocenter at Krasnaya Presnya. At the exhibition Gazprom presented the advanced energy saving equipment enabling to significantly reduce air pollution.
The Government of Slovakia decided to sell a 49 per cent stake in SSP (Slovak gas transmission company) to Gazprom’s international consortium established by Ruhrgas and Gaz de France.
The construction of the first Blue Stream string was completed.
Beregovaya compressor station, starting point of Blue Stream
Gazprom assessed the operating results for the autumn-winter period. The Company completely fulfilled its obligations to deliver gas to Russian consumers and abroad during the autumn-winter period of 2001 and 2002. Within the preceding 6 months gas production increased by more than 1.1 billion cubic meters and gas saving was at 9.9 billion cubic meters.
Alexander Ananenkov, Deputy Chairman of the Gazprom Management Committee and Euan Baird, President and Chief Executive Officer of Schlumberger signed a Memorandum of Understanding to set up a technological alliance. The document stipulated the development of mutually beneficial cooperation in the hydrocarbon production and transportation sector.
Gazprom completed the repurchase of a 32 per cent stake in Purgaz production company from Itera International Group of Companies. The call option was accomplished in compliance with the Sales and Purchase Agreement of a stake dated February 10, 1999.
The Gazprom delegation paid a visit to Bucharest. In the course of negotiations the parties discussed the prospects for expanding Russian gas transit via Romania and creating conditions for increasing Russian gas supplies to Romania. The meeting also agreed to establish on a par a Russian-Romanian joint venture to import and sell Russian gas in Romania.
Gazprom successfully placed Eurobonds totaling USD 500 million for a five year period at 9.125 per cent. Credit Swiss First Boston and Schroder Salomon Smith Barney banks were the main executives of the operation. Russian banks also entered the syndicate.
Alexey Miller, Chairman of the Gazprom Management Committee and Konstantin Pulikovsky, Plenipotentiary Envoy of the Russian President to the Far Eastern Federal District signed a Memorandum of Cooperation. One of the main tasks of cooperation is joint implementation of the Program for developing gas resources in Eastern Siberia and the Far East.
A competitive tender for auditing Gazprom’s Accounting Statements in 2002 was concluded. The tender commission recognized the offer of PricewaterhouseCoopers Audit as the most compliant with the presented requirements.
Alexey Miller, Chairman of the Gazprom Management Committee and Vera Shatalova, Head of the Gazprom Trade Union signed a collective agreement. The document sets social and labor relations between Gazprom’s top management and employees.
The 5th annual General Shareholders Meeting of the European Business Congress (EBC) was held. Rem Vyakhirev requested meeting to relieve him of the post of EBC President. Alexey Miller, Chairman of the Gazprom Management Committee was unanimously elected to the post.
Gazprom finished the construction of the second train of the Blue Stream gas pipeline offshore section under the Black Sea.
Saipem 7000 installation vessel laying Blue Stream gas pipeline
Alexey Miller, Chairman of the Gazprom Management Committee announced Mezhregiongaz responsible for the sales of the Company’s gas to the CIS and Baltic States.
The following documents were signed:
- the Agreement of Intent between Gazprom and Dutch Gasunie to cooperate in personnel training and knowledge exchange in power business;
- the Agreement of Intent between Gazprom and Rosneft stipulating joint implementation of the Kurmangazy offshore field development project in the Caspian Sea;
- the Memorandum of Cooperation between Gazprom and YUKOS. According to the document, YUKOS Petroleum Company and affiliated entities transferred 25.58 per cent of Zapsibgazprom shares to Gazprom;
- the Memorandum of Cooperation between Gazprom and MGK Itera. According to the document, the parties agreed that Gazprom, owning a 49 per cent stake, should purchase an additional 51 per cent stake in Severneftegazprom, which held the subsurface use license for the Yuzhno-Russkoye field.
Gas production facilities at Yuzhno-Russkoye field
The annual General Shareholders Meeting of Gazprom was held. The Meeting adopted the adjusted Gazprom Articles of Association as well as a few fundamental corporate documents, such as the Regulation on the Company's General Shareholders Meeting, on Board of Directors, on Management Committee and on Management Committee Chairman as well as the Corporate Governance Code. The Shareholders Meeting elected the new Board of Directors consisting of 11 members. Dmitry Medvedev, First Deputy Head of the Russian Presidential Administration was elected as Chairman of the Board of Directors.
Gazprom, Royal Dutch Shell and ExxonMobil signed in Beijing a Framework Agreement with the Chinese gas company PetroChina for setting up a joint venture to build West –East, the first trans-China gas pipeline.
The second string of the Russia – Turkey gas pipeline offshore section (Blue Stream) was laid across the Black Sea.
Gazprom summed up the results of the Group’s activities in the first half of 2002. In the indicated period, the Company’s subsidiaries produced 264.8 billion cubic meters of gas, 4.8 million tons of gas condensate and 349 thousand tons of oil. In comparison with the similar period of 2001, Gazprom boosted gas production by 3.5 billion cubic meters as well as gas condensate and oil production by 73.8 thousand tons.
A 67 kilometer long Russian section of the Yamal – Europe gas pipeline from the Russia-Belarus border to Smolensk was commissioned.
The Severo-Vasyuganskoye field was put into operation in the Tomsk Region. Field gas and condensate reserves amount to 29 billion cubic meters and 6.3 million tons respectively.
Gazprom-Media purchased stakes owned by Vladimir Gusinsky as well as debt liabilities of media companies within the Gazprom-Media holding.
Vladimir Putin, President of the Russian Federation and Alexey Miller, Chairman of the Gazprom Management Committee discussed the results of the Company’s activities in the first half of 2002 and its future plans.
The Euromoney Magazine acknowledged Gazprom to be a leader of corporate management in Russia.
Gazprom decided to place a RUB 5 billion bond in 2002. The Resolution on Bond Placing was approved at the Board of Directors meeting on August 20, 2002.
Gazprom completed the consolidated financial statements in accordance with the International Financial Reporting Standards (IFRS). The Company’s financial reports were approved by PricewaterhouseCoopers Audit.
Gazflot (a wholly-owned subsidiary of Gazprom) drilled exploration well No 2 at the Severo-Kamennomysskoye gas field in the Ob Bay.
The 11th extended meeting of the Commission on natural gas and liquefied petroleum gas use as a motor fuel under the Government of the Russian Federation was held.
The following documents were signed:
- The Regulations for Investment Program Development and Implementation. Such document was developed in the Company for the first time.
- Several Strategic Cooperation Agreements between Gazprom and Alfa-Bank;
- The Agreement between Gazprom and Gazprom-controlled companies and Eurofinance Bank to integrate efforts on restructuring media assets of Gazprom-Media. The parties agreed to set up a new media holding owned by Gazprom (51 per cent stake) and Eurofinance Bank (49 per cent stake).
The Gazprom Board of Directors approved the decision to float a bond issue as well as launching a RUB 5 billion bond emission program.
The following documents were signed:
- The Agreement to set up the International Consortium for Ukrainian Gas Transmission System Development and Management;
- The Agreement to set up a new Joint Stock Company to be engaged in gas and oil field exploration and development in Yakutia as well as storage, transmission and marketing of hydrocarbon feedstock and derivatives.
- the Agreement of Cooperation between Gazprom and Surgutneftegaz. Pursuant to the document, the parties will implement joint projects for prospecting oil fringes and Achimov gas/condensate deposits in the Urengoy oil, gas and condensate field.
- the Regulations for Gazprom Gas Resources Distribution regarding gas export and gas production by independent companies. The document is focused on improving the control and efficiency of gas resources distribution to Russian consumers;
- the founding documents to set up the International Consortium for Ukrainian Gas Transmission System Development and Management.
The last joint of the Blue Stream gas pipeline connecting its offshore and onshore (Turkish) sections was welded 60 kilometers away from Samsun (Turkey).
Gazprom placed an additional USD 200 million Eurobond issue.
The Company signed the following documents:
- the Agreement for Strategic Partnership between Gazprom and Vneshtorgbank. The Agreement was ratified by Alexey Miller and Andrey Kostin. This document provides for further development of mutually beneficial relations between Gazprom and Vneshtorgbank;
- the General Agreement for Strategic Partnership between Gazprom and LUKOIL between 2002 and 2005;
- the order On centralized sales of liquid hydrocarbons produced by Gazprom’s subsidiary companies;
- the Agreement of Cooperation between Gazprom and the Russian Olympic Committee. Following the document, Gazprom will provide sponsor and charity support to the Russian Olympic Committee amounting to USD 3 million. A significant part of this money will be committed to training the Russian national team for the 28th Olympic Games to be held in Athens in 2004.
The Gazprom Management Committee resolved to implement the North European Gas Pipeline project (NEGP project). Gazprom approved the action plan and implementation schedule for the NEGP project.
A ceremony dedicated to commissioning of the first workshop of the Purtazovskaya compressor station in Urengoy settlement (Yamal-Nenets Autonomous Area) was held. The compressor station is to link the Zapolyarnoye oil, gas and condensate field with the Unified Gas Supply System of Russia.
Gazprom presented a new strategic project of the North European Gas Pipeline construction.
The following documents were signed:
- the Agreement of Cooperation in the gas sector between Gazprom and Uzbekneftegaz National Holding Company;
- the Addendum to the Tariff Agreement between the employees and executives of Gazprom, its subsidiary companies and organizations from 2001 to 2003;
- the order On improving the gas sales procedure, which is aimed at reducing administrative expenses, improving the management structure of Gazprom gas sales as well as enhancing the security of gas distribution network operation and developing the Russian gas market.
The startup complex of the Russia – Turkey gas pipeline (Blue Stream) was put onstream.
The second comprehensive gas treatment unit was put into operation at the Cenomanian deposit of the Zapolyarnoye oil, gas and condensate field.