On the results of the working meeting

The Chairman of the Management Committee Alexey Miller and a member of the Management Committee, Head of the Department of gas, gas condensate and oil production Vasiliy Podyuk had a working meeting. The participants of the meeting discussed the priority measures for increasing the volumes of gas production.

It was noted specially that Gazprom settled the task of gas production stabilization and increase in 2002. The volume of gas production increased by 9.9 bcm, as compared to 2001, and amounted to 521.9 bcm (including 36 bcm of “new” gas). This significant production increment is an evidence of the fact that financial resources were concentrated and the work of corresponding divisions of the company was coordinated.

Starting from 2002 the pool of temporarily shut-in wells has not increased. The logistics of the companies for production well repair has improved significantly.

Positive results became possible due to punctual fulfillment of the Schedule of priority measures to ensure gas production in 2002 and 2003 in the volume of 520 and 530 bcm, respectively. The Board of Directors approved the fulfillment of the measures stipulated by the Schedule at the meeting on January 21, 2003. Funding, logistics and construction schedules were developed for the most important gas production facilities. Moreover, a special working group was formed, the members of which regularly hold briefing meetings at gas production sites.

The participants of the meeting stressed that Gazprom might produce additional 3.6 bcm of natural gas in 2002. However, due to low gas consumption in summer period in Russia and limited gas transmission beyond the Russian boundaries the Company made decision not to increase the volume of production.

The fact that Gazprom has overfulfilled the “blue fuel” production targets for the first five months of 2002 by 2.9 bcm confirms high rate of gas production in the Company.

It was noted at the meeting, while discussing the corporate plan for 2003, that a second stage of the booster compressor stations’ construction should be completed at the Yumburg gas field as well as the first stage of booster compressor stations construction at the Zapadno-Tarkosalinskoye and Yubileinoye fields. Complex gas treatment plant (UKPG-2C) should reach full nominal capacity and complex gas treatment plants UKPG-3C should be commissioned at Zapolyarnoye field, at Tab-Yakhinskaya area of Urengoy gas field, at Aneryakhinskaya area of Yamburg field, Yen-Yakhinskoye and Vyngayakhinskoye fields. To provide for gas transmission, gas transportation grid will be extended in Zapolyarnoye – Urengoy and Urengoy – Nadym sections. The production plan for 2003 stipulates production of 531.7 billion cubic meters of natural gas. The schedule and plan of the measures required are made and the targets will be fulfilled.

Information Directorate, OAO Gazprom