2002
On January 4, the Gazprom Management Committee adopted new gas production strategy up to 2010. According to this strategy, the Yamal Peninsula, Ob and Taz Bays as well as the Arctic Shelf have a major role to play in building-up gas production.
On February 20, the Gazprom Headquarters hosted a meeting of the Company's top management and heads of the regional authorities of the Russian Federation at the President Administration as well as the Government of the Russian Federation. The meeting was aimed at discussing cooperation perspectives between Gazprom and the Russian Federation regions to provide sustainable functioning of the Unified Gas Supply System of Russia.
On February 28, Dresdner Kleinwort Wasserstin investment bank was authorized by Gazprom as a financial consulting agency to sell Media assets and complete the appraisal of Gazprom-Media holding assets.
On March 12, the 4th International Professional Exhibition "Energy Saving 2002" was opened at Expocentre on Krasnaya Presnya. At this exhibition Gazprom demonstrated the advanced energy saving equipment enabling to significantly decrease harmful emissions into the atmosphere.
On March 14, the Government of Slovakia decided to sell a 49 per cent stake in SSP Company (Slovak gas transporting company) to Gazprom’s international consortium established by Ruhrgas and Gaz de France.
In March, Gazprom assessed the operating results in autumn-winter period. Gazprom completely fulfilled its obligations to deliver gas to Russian and foreign consumers during autumn and winter period of 2001-2002. Within the preceding 6 months, gas production increased by more than 1.1 bcm of gas and saving was at 9.9 bcm.
In late March, Alexander Ananenkov, Deputy Chairman of the Gazprom Management Committee and Euan Baird, President and Chief Executive Officer of Schlumberger international company signed a Memorandum of understanding to set up a technological alliance. The document stipulated a mutually beneficial cooperation development in the hydrocarbon production and transportation sector.
On March 31, the Blue Stream first line construction was completed.
On April 1, Gazprom completed a buy-back of a 32 per cent stake in Purgaz from Itera International Group of companies. The call option was accomplished within the Purchase and Sale Agreement of a stake as of February 10, 1999.
On April 5, within the accords achieved between Alexey Miller, Chairman of the Gazprom Management Committee and Adrian Nastase, Prime Minister of Romania in February 2002, a Gazprom delegation paid a visit to Bucharest. In the course of negotiations the parties discussed the prospects of expanding Russian gas transit flows through Romania and creating conditions to expand Russian gas deliveries to Rumania. They also agreed to establish, on par, a Russian-Rumanian joint venture to import and sell Russian gas in Rumania.
On April 12, Gazprom successfully placed Euronotes in the amount of US$ 500 million at full price for a 5 year period with a 9.125 per cent coupon. Credit Swiss First Boston and Schroder Salomon Smith Barney were the leading managers of the issue. The Russian banks also entered into the syndicate.
On April 16, a meeting of Alexey Miller, the Gazprom Management Committee Chairman and Philip Watts, the Chairman of the Committee of Managing Directors of Royal Dutch/Shell Group took place at the Gazprom Headquarters. “Strategic cooperation of Gazprom and Royal Dutch/Shell, started in 1997, is embodied in fruitful work on joint projects. It is especially important for us that in the framework of the West–East project implementation we work as the consortium participants with equal rights to achieve substantial progress,” declared Alexey Miller. The West-East gas pipeline project is one of the key infrastructural projects of the 10th five-year economic development plan of China (2001 – 2005). Gazprom examined its participation in the project as the first stage towards cooperation development with China while paying special attention to expanding cooperation in the Asia Pacific Region and particularly in China. The project stipulates the gas pipeline construction from Sintszyan–Uigur Autonomous Region to Shanghai. Gas pipeline length would be extended to 4,000 kilometers. The annual gas supply would reach 12 bcm.
On April 22, Alexey Miller, Chairman of the Gazprom Management Committee and Konstantin Pulikovsky, Plenipotentiary of the President of the Russian Federation in the Far Eastern Federal District signed a Memorandum of cooperation. One of the main tasks of cooperation was to jointly implement the Program on developing gas resources in Eastern Siberia and the Far East.
On May 6, a competitive tender for auditing the Gazprom Accounting Reports in 2002 was concluded. The tender commission recognized the offer of the auditing company PricewaterhouseCoopers Audit as the most conforming to the presented standards.
On May 17, Alexey Miller, Chairman of the Gazprom Management Committee and Vera Shatalova, Head of the Gazprom Trade Union signed the collective contract. The document set social and labor relations between Gazprom’s top management and employees.
On June 4, Gazprom and Gasunie (Dutch company) signed an Agreement on intent to cooperate in the personnel training and knowledge exchange sectors for the energy business.
On June 4, the 5th Annual Shareholders Meeting of the European Business Congress (EBC) was held. At the meeting, Rem Vyakhirev requested to relieve him of the post of EBC president. Alexey Miller was unanimously elected to the post of Chairman of the Gazprom Management Committee.
On June 5, Gazprom completed the construction of the 2nd line of the deep water section of the Blue Stream gas pipeline laid on the seabed of the Black Sea.
On June 10, Alexey Miller, Chairman of the Gazprom Management Committee announced Mezhregiongaz responsible for the sale of the Company’s gas to the CIS and Baltic states.
In June, Gazprom completed the Consolidated Accounting Report for 2001. It was confirmed by the Audit Report of PricewaterhouseCoopers Audit.
On June 19, Gazprom and Rosneft signed an Agreement of intent stipulating integration for both companies in the Kurmangazy offshore field development project in the Caspian Sea.
On June 27, Alexey Miller, Chairman of the Gazprom Management Committee and Mikhail Khodorkovsky, Chairman of YUKOS Management Committee signed a Memorandum of understanding. According to the document, YUKOS Petroleum Company and affiliated entities transferred 25.58 per cent of Zapsibgazprom’s shares to Gazprom.
On June 27, Alexey Miller, Chairman of the Gazprom Management Committee and Igor Makarov, President of Itera International Group signed a Memorandum of cooperation. According to the document, the Gazprom owning a 49 per cent stake purchased an additional 51 per cent stake in Severneftegazprom, which held the license to use resources of the Yuzhno-Russkoye field.
On June 28, the Annual Shareholders Meeting of Gazprom was held. The meeting members represented the interests of shareholders holding 22,175,106,217 shares in sum, which comprised 93.76 per cent of their total amount. The general meeting approved the Annual Report as well as Annual Financial Accounts of the Company for 2001. The meeting passed the new edition of Gazprom Charter as well as a few fundamental documents such as Regulation on General Shareholders’ Meeting, on Board of Directors, Management Committee and Chairman of Management Committee as well as Code of Corporate Governance (Conduct). PricewaterhouseCoopers Audit was confirmed as the Company’s auditor for 2002 in compliance with the recommendations of the Board of Directors. The meeting elected a new Board of Directors consisting of 11 members. Dmitry Medvedev, First Deputy Head of the Presidential Administration was elected to the post of Chairman of the Board of Directors.
On July 4, in Beijing, Gazprom, Royal Dutch Shell and ExxonMobil signed a Framework Agreement with the Chinese gas company PetroChina to establish a joint venture to build the first trans-China gas pipeline West–East. According to the document, 15 per cent of the JV stock capital would be assigned to Gazprom, Royal Dutch/Shell and ExxonMobil. PetroChina would retain a 55 per cent stake in JV.
On July 5, the 2nd line of the Russia–Turkey gas pipeline offshore section (Blue Stream gas pipeline project) was laid on the seabed of the Black Sea.
In July, Gazprom-Media purchased stakes owned by Vladimir Gusinsky as well as requirements under his control in relation to media-companies of the Gazprom-Media holding.
On July 22, Gazprom summarized the results of the Group’s business activity in the first half of 2002. In the indicated period, the Company’s enterprises produced 264.8 bcm of gas, 4.8 mln tons of gas condensate and 349 thousand tons of oil. In comparison with the same period of 2001, Gazprom increased its production of gas by 3.5 bcm and gas condensate & oil by 73.8 thousand tons.
On July 23, the commissioning of the 67 km long Russian section of the Yamal–Europe gas pipeline from the Russia-Belarus border to Smolensk, was started.
On July 26, the formal commissioning of Severo-Vasyuganskoye gas condensate field in Tomsk region was held. The field contained 29 bcm of gas and 6.3 million tons of gas condensate.
On August 2, Vladimir Putin, President of the Russian Federation and Alexey Miller, Chairman of the Gazprom Management Committee discussed the results of the Company’s business activity in the first half of 2002 and future plans.
On August 9, the well-known Euromoney Magazine acknowledged Gazprom to be a leader of corporate management in Russia.
In August, Gazprom completed the Consolidated Financial Reports for 2001 prepared in accordance with the International Accounting Standards. The Company’s financial reports were approved by PricewaterhouseCoopers Audit.
On August 27, Gazprom decided to place a RUR 5 billion bond loan in 2002. The Resolution on Bond Placing was approved at the Board of Directors meeting on August 20, 2002.
On September 3, the 11th extended meeting of Commission on using natural gas and liquefied oil gas as a motor fuel, under the Government of the Russian Federation.
In early September, Gazflot (a wholly owned subsidiary of Gazprom) drilled the exploration well No 2 at the Severo-Kamennomysskoye gas field in the Ob Bay. While testing the well, 374,000 m3 gas inflow was daily obtained indicating it to be a highly perspective field.
On September 16, Alexey Miller, Chairman of the Gazprom Management Committee signed the Regulations on Investment Program Development and Implementation. The document was developed for the first time.
On September 19, Gazprom and Alfa-Bank signed several Agreements of strategic cooperation. The Agreements stipulated implementation of joint projects including short term credits arrangement for Gazprom to cover the Company’s cash deficiencies and balance of payments execution, allocation of Gazprom’s temporarily liquid funds placed on Alfa-Bank’s accounts as well as Alfa-Bank’s participation in the project financing programs of the Company.
On September 26, Gazprom and Gazprom-controlled companies signed an Agreement with Evrofinance Bank on effort integration to restructure media-assets of Gazprom–Media. Under the Agreement, the bank invested more than US$ 100 mln in setting up and financing Evrofinance Bank’s scheme to pay debts of Gazprom-Media companies for Gazprom in amount of US$ 600 mln. The parties agreed to set up a new media-holding owned by Gazprom (51 per cent stake) and Evrofinance Bank (49 per cent stake).
On September 27, the Gazprom Board of Directors approved the decision to issue internal bonds as well as RUR 5 bln bond emission program.
On October 7, in Kishinev, Alexey Miller, Chairman of the Gazprom Management Committee and Yury Boiko, Chairman of the Neftegaz Ukrainy Management Committee signed an Agreement to set up the International Consortium of Ukrainian Gas Transportation System Development and Management.
On October 18, in Yakutsk, Alexey Miller, Chairman of the Gazprom Management Committee and Vyacheslav Shtyrov, President of the Sakha Republic (Yakutia) signed an Agreement to set up a new Joint-Stock Company. The company will be engaged in the Yakut gas and oil field exploration and development as well as storage, transmission and marketing of hydrocarbon resources and hydrocarbon processing products.
On October 20, 60 km away from Samsun (Turkey), the last joint of the Blue Stream gas pipeline connecting its offshore and onshore (Turkish) sections was welded.
On October 22, Gazprom and Surgutneftegas signed an Agreement of cooperation. Pursuant to the document, the parties will implement joint projects on prospecting oil fringes and Achim deposits at the Urengoy oil and gas condensate field.
On October 23, Gazprom placed an additional US $200 mln Eurobond issue.
In late October, Alexey Miller, Chairman of the Gazprom Management Committee signed the Gazprom Gas Resources Distribution Regulations due to gas export and gas production by independent companies. The document focused on the greater control and efficiency increase within gas resources distribution for Russian consumers.
On October 30, in Kiev, Gazprom and Neftegaz Ukrainy signed the constituent documents to set up an International Consortium on the Ukraine Gas Transmission System Development and Management.
On November 10, Gazprom and Vneshtorgbank signed an Agreement on strategic partnership. The Agreement was ratified by Alexey Miller and Andrey Kostin. This document called for further development of mutually beneficial relations between Gazprom and Vneshtorgbank.
On November 18, Gazprom and Lukoil signed a General Agreement on strategic partnership over 2002 to 2005.
On November 18, the Gazprom Management Committee adopted a resolution to implement the North European gas pipeline project (NEGP project). Gazprom approved the action plan and milestones schedule for the NEGP project.
In November, Gazprom completed the Consolidated Financial Statements in compliance with the Russian legislation.
On November 21, Alexey Miller, Chairman of the Gazprom Management Committee signed the Order on centralized liquid hydrocarbon marketing produced at the subsidiary level. This document has no precedent in the history of the Company. The main goal is to increase economic efficiency due to liquid hydrocarbon marketing using coordinated marketing policy.
On November 25, Gazprom and the Russian Olympic Committee signed Agreements of cooperation. Under the terms of these Agreements, Gazprom will sponsor the Russian Olympic Committee donating US$ 3 mln. Significant part of money will be committed to prepare Russian national team for the 28th Olympic Games 2004 to be held in Athens.
On November, Gazprom finished preparation of Consolidated Financial Statements for the first half of 2002 under the requirements of the International Financial Accounting Standards.
On November 29, a ceremony dedicated to the commissioning of the 1st unit of the Purtazovskaya compressor station located in the settlement of Urengoy (Yamal-Nenets Autonomous Okrug) was held. The compressor station would unite Zapolyarnoye oil and gas condensate field and the United Gas Transmission System of Russia.
On December 3, the Company presented a new strategic project of the North-European gas pipeline.
On December 16, in Tashkent, Gazprom and National Holding Company Uzbekneftegaz signed an Agreement of strategic cooperation.
On December 19, Alexey Miller, Chairman of the Gazprom Management Committee and Vladimir Babkin, Chairman of the Interregional Trade Union Council signed an Additional Agreement to the Tariff Agreement between Gazprom’s employees and managers, its subsidiary companies and organizations over 2001 to 2003.
In the end of December, 2nd unit of gas treatment facilities was put into operation at the Cenomanian Zapalyarnoye gas and oil condensate field.
On December 23, Alexey Miller, Chairman of the Gazprom Management Committee, meeting with journalists, summed up the preliminary results of the Company in 2002. As Alexey Miller noted, Gazprom completely fulfilled regulation and gas production growth obligations. Gas production by the Gazprom Group was expected to reach 521.7 bcm in 2002, i.e. by 9.7 bcm more comparing to the figures of 2001. According to Alexey Miller, in 2002 the Company for the first time completely fulfilled investment program. It was especially important that all significant assets, which had been withdrawn from the Company, were brought back.
On December 30, Alexey Miller, Chairman of the Gazprom Management Committee signed an Order on improving gas marketing procedure. The Order aimed at reducing administrative expenses, improving gas marketing management structure of Gazprom as well as enhancing gas distribution network safety and Russian gas market developing.
On December 30, the start-up complex of gas pipeline Russia-Turkey (Blue Stream) was put into operation.