Alexey Miller speaks at conference call dedicated to Oil and Gas Industry Workers Day

Esteemed colleagues!

On behalf of Gazprom's Management Committee and my personal behalf I heartily congratulate you on Oil and Gas Industry Workers Day!

Nowadays, Gazprom steadily continues to follow the path towards large-scale and comprehensive development. Our Company is gradually delivering large-scale projects both in Russia and abroad and conquering ever new frontiers. This is proven by the 2011 operating results, a whole range of which was record high. For the second consecutive year Gazprom became the global leader by net profit. We have the largest net profit among all companies and all banks worldwide. We also lead by the cost to income ratio among all global companies. We are the most efficient Company in the world.

Gazprom maintains the trend toward sustainable development in 2012 as well.

Preparation of the Bovanenkovo field is nearing completion. Its commissioning will lay the foundation for developing the abundant resources of the Yamal Peninsula. Construction of production wells was launched at the Kirinskoye field – for the first time hydrocarbons will be independently produced on the Sakhalin shelf by a Russian company. And this company is Gazprom. The work is underway on elaborating the investment rationale for the Chayandinskoye and Kovyktinskoye fields based on which the Yakutia and Irkutsk gas production centers will be developed in Eastern Russia.

The Company actively builds new gas pipelines.

The first string of Bovanenkovo – Ukhta, gas transmission system (GTS) of the new generation, will be commissioned soon; the second string is under construction. The investment rationale for building the Yakutia – Khabarovsk – Vladivostok gas transmission system is being prepared. The said GTS will be an important element of the Unified Gas Supply System in Russian eastern regions.

The second string of the Nord Stream will be commissioned ahead of schedule this year. For the first time ever this gas pipeline has linked Russia and Europe directly. In December construction of South Stream, another gas corridor aimed to directly connect Russia with Europe, will be launched.

Therefore, Gazprom's dependence on transiting countries is gradually becoming weaker and will be almost eliminated in the nearest future. Our efforts on increasing the liquefied natural gas share in export portfolio plays an important role here.

In the meantime, the domestic gas market has been and remains our first priority nowadays. Russia is the largest gas producer in the world, therefore as many Russians as possible must have the advantage of using natural gas. That is why Gazprom annually expands the Russian Regions Gasification Program. In 2012 the Company's investments in gasification will hit the record level again.

We plan that Russia's gasification will ultimately be economically viable at its most. However, increasing importance is being given by the Company to natural gas vehicles in addition to the gasification of industrial enterprises and the household sector. As you know, the decision was adopted to include the NGV Fuel Development Program into the Gasification Program of Russia. In this respect, we will be in close cooperation with regional authorities. Expanding the NGV fuel sales market as maximally as possible is among our top-priority tasks in the domestic market. For the entire country this means better environmental conditions and road transport economics, and for us – a prominent and lucrative business.

Another top-priority activity for Gazprom is the oil segment. The strategic development guidelines of Gazprom Neft serving as the foundation of our oil business stipulate that by 2020 production will reach 100 million tons of oil equivalent per year and refining – 70 million tons of oil per year. Gazprom Neft moves ahead confidently so as to attain these figures by building up production, expanding its geographic reach and upgrading the refining capacities. As of today, Gazprom Neft is one of the most efficient oil companies in Russia.

Gazprom remains a pro-active player in the domestic power market. It is the largest Russian investor in this industry. In March 2012 the Russia's most powerful combined cycle gas turbine unit was put onstream at the Kirishi SDPS; this year the Adler TPP will be commissioned – key power supply facility for the Winter Olympic Games 2014. Our aim is to strongly boost the power generation efficiency and engage the available capacities to attain the level of the world's largest generating companies.

Esteemed colleagues!

As in previous years we are celebrating our holiday with strong operating results and ambitious goals. Gazprom is a modern, innovative and rapidly developing company that not only meets all of the demands of today's global market, but also has a significant influence on it. Our work is vitally important for millions of consumers both in Russia and abroad. Gazprom will always be a reliable partner for them.

I am convinced that the high professional skills and experience of our Company's managers, experts and workers as well as their hard work and commitment will permit Gazprom to conquer new frontiers in the global energy market.

Dear friends! I would like to sincerely congratulate you with a professional holiday. I wish you impressive new achievements and success, robust health, happiness and prosperity to you and your families. I wish you all the best. Happy holiday!