Gazprom announces its international cooperation plans for 2007
Today Gazprom is announcing its international cooperation plans for 2007. Gazprom’s main challenge is to continue developing as a world class global energy concern capable of making a substantial contribution in the global energy market sustainability and predictability.
“Gazprom sets out to further progress and develop the success of the year 2006, during which the Company’s market capitalization has increased 55 per cent making us growth leaders among the prominent global energy concerns”, – said Alexander Medvedev, Deputy Chairman of the Gazprom Management Committee.
In 2007 Gazprom will go on implementing investment programs, building up gas production and diversifying energy transportation routes to meet demand from Russian and foreign consumers and partners.
Next year’s investments will amount to US$ 20 bln. The funds will be used to increase production, including to develop promising fields such as the Yuzhno-Russkoye oil, gas and condensate deposit where the aggregate extraction volume will exceed 600 bcm starting from 2008.
“Gazprom’s strategic goal is to keep growing as a world class energy company involved in meeting global energy challenges and successfully coping with the tasks relating to higher profitability, bigger shareholder value and stronger consumer confidence”, – said Alexander Medvedev.
In order to achieve this goal, Gazprom expands the dialogue with all of the energy market players, devising joint action plans, improving mutual understanding principles and contributing to joint efforts aimed at ensuring the global energy security.
Gazprom keeps maintaining regular contacts with European Union officials.
“We are fully aware of and share the concerns of the European Commission over EU energy supply related issues and support the EU efforts to create a single European energy market”, – said Alexander Medvedev. – We are firmly convinced that a bigger share of Gazprom in the downstream sector will lead to a lesser degree of the European market monopolization.
Gazprom’s decisions to abandon the Territorial Limitations, Right of First Refusal and Preferred Customer clauses in its contracts with European consumers points to the Company’s readiness to take account of EU initiatives in its business activity.
In 2007 Gazprom will continue executing projects targeted at providing foreign partners with the opportunity to operate in the Russian market. Moreover, there are plans to further promote the practice of entering into mutually beneficial swap agreements on the example of the accords earlier achieved with Eni, BASF and E.ON.
Further executing projects aimed at developing the existing gas transmission system and diversifying the Company’s reserves is another strategic priority for 2007. Particularly, such projects as Nord Stream, which is being implemented in cooperation with the European partners, will enable to create transmission capacities necessary to supply consumers with natural gas from new fields included in Gazprom’s development projections.
“Receiving broad media coverage, the strategy of Gazprom to abandon the practice of granting subsidies to the CIS countries, which has been inherited from the Soviet Union times, is proof of Gazprom’s adherence to operate under the principles of a reliable and long-term natural gas supplier”, – said Alexander Medvedev. – Any energy supplier strives to receive reasonable capital returns enabling to increase the scope of geological exploration, production and transport infrastructure investments. Giving up subsidies will also provide a stimulus to take steps aimed at energy conservation and most efficient natural gas utilization.
“Despite the talks with Belarus were difficult for both parties, we were glad to avoid gas supply shortages while reaching an agreement”, – added Alexander Medvedev.
Furthermore, in 2007 Gazprom will do its best to timely disclose information on its operations, address topical issues and discuss its business plans with partners and consumers.
Information Directorate, OAO Gazprom