Gazprom and Yamal-Nenets Autonomous Okrug sign Cooperation Agreement for 2011
Today Alexey Miller, Chairman of the Gazprom Management Committee and Dmitry Kobylkin, Governor of the Yamal-Nenets Autonomous Okrug (YaNAO) signed the Cooperation Agreement for 2011.
Dmitry Kobylkin and Alexey Miller signing Cooperation Agreement for 2011 between Gazprom and Yamal-Nenets Autonomous Okrug
The Agreement envisages cooperation deepening between the parties within the Comprehensive Development Program for the Yamal Peninsula and the adjacent offshore areas and pursues the objective of fostering the traditional partnership relations between Gazprom and the YaNAO Government.
The document reflects mutual obligations in the tax and social policies, natural resource management, energy saving, property and land relations, capital construction and transportation.
The parties will continue developing and implementing the regional gasification programs, boosting energy efficiency, expanding natural gas utilization as a transport fuel, conversion of gas-fired boiler houses to the combined heat and power production cycle, using low-pressure natural gas and associated petroleum gas as a fuel while constructing new power plants.
The YaNAO Government is obligated to assist Gazprom in geological investigation of subsurface resources, exploration and production of hydrocarbons, survey and construction activities in the Okrug, timely revision of tariffs for public utility services provided by Gazprom's subsidiaries in the region, as well as in the land allocation procedure.
When delivering investment projects of high socioeconomic significance for the Okrug, Gazprom will be entitled to tax and other benefits foreseen by the Russian Federation legislation and provided by the YaNAO Government.
In turn, Gazprom will provide regional consumers with reliable supplies of natural gas and petroleum derivatives in agreed volumes.
The Company will further participate in regional programs aimed at supporting indigenous minorities of the North as well as in charitable and sponsorship activities. This particularly involves assistance in supplying deer breeding and fishing crews with transport. Gazprom will also consider the purchasing of certified agricultural products produced in the Okrug.
With a view to promote the employment opportunities for the YaNAO indigenous people the Company will ensure traineeship at its subsidiaries for graduates from the regional primary and secondary vocational and higher educational institutions. Students from vocational and higher educational institutions majoring in fields of Gazprom's interest will take part in the competition to obtain special scholarships from the Company. In addition, Gazprom will give priority to the YaNAO residents in the recruitment process.
The Yamal-Nenets Autonomous Okrug (YaNAO) is Gazprom's major gas production province where the Company extracts over 90 per cent of natural gas (around 83 per cent of the total domestic gas production).
The principal document regulating cooperation between Gazprom and the YaNAO is the General Agreement. In furtherance of the document the parties signed the Memorandum of Cooperation, the Partnership Agreement and the Gasification Accord in the natural resources exploitation area, while Cooperation Agreements are signed on an annual basis.
Between 2007 and 2009 Gazprom invested RUB 390 million in the regional gasification. These funds were used to design and construct five gas laterals. In 2009 three gas laterals were completed. In 2010 another two gas pipelines were constructed. The Company earmarked RUB 31 million for these purposes.