Alexey Miller, Chairman of the Gazprom Management Committee, and Rainer Seele, Chairman of the Executive Board of OMV, today signed in St. Petersburg the Contract on the amendments to the Basic Agreement on Asset Sale.

Under said Contract the parties have agreed, inter alia, to extend until June 2022 the negotiations for the final agreement on the deal.

During the working meeting, Alexey Miller and Rainer Seele discussed ongoing cooperation and noted, among other things, a considerable increase in Gazprom's gas supplies to OMV in 2019 and in January-February 2020.

The Gazprom Board of Directors took note of the information about the Gazprom Group's cost optimization (reduction) efforts in 2019 and its priorities in this area for 2020.

Gazprom is taking a comprehensive approach to enhancing both the efficiency of its operating and investment costs and their control, thereby keeping its cost growth rates at a minimal level.

Considerable attention is given to the formation of Gazprom's budget. When drawing up the expenditure budget for the next year, Gazprom annually sets strict cost limits for the parent company and its subsidiaries, while actively looking for cost reduction options. The Company ranks investment projects in order of priority, depending on their strategic importance and effectiveness.

This approach delivers significant cost savings. For instance, Gazprom managed to reduce the expenditure budget by RUB 65.7 billion during the budget planning for 2020. In the course of the budget implementation, the Company continues to search for additional cost reduction opportunities.

At the same time, Gazprom is improving the budgeting process in the Group's companies and strengthens the control over their budget performance. In particular, a set of key performance indicators (KPIs) for budgeting was updated for 822 companies in 2019, depending on their types of activity.

A crucial innovation was put into practice starting from 2020: Gazprom transitioned to review and approval of the consolidated budgets issued by the three main sub-holdings of the Group: Gazprom Mezhregiongaz, Gazprom Energoholding, and Gazprom Export. Previously, Gazprom had controlled their financial and economic performance through the use of individual solutions: application of the KPI system and participation mostly in the budgeting of the parent bodies of these sub-holdings. The new approach will help increase the transparency of business processes engineering in the sub-holdings and enhance control over their operational and investment indicators, and will also help identify further growth and development capacities in the top-priority activities.

Significant economic benefits are achieved through the implementation of annual operational efficiency and cost reduction programs for Gazprom and the Group's subsidiaries. Each program includes a list of specific activities for separate lines of businesses.

The main sections of Gazprom's program for 2020 include optimization of estimated project costs at the design stage, cost reduction in the procurement of goods, works and services, as well as energy conservation and energy efficiency measures. It is planned to obtain additional funds from disposal of non-core assets of Gazprom.

Gazprom is consistently expanding the application of advanced tools to improve the financial resources management within the Group. For example, the Group's companies are widely using banking support services for contracts on the supply of goods, performance of work and provision of services in their investment projects.

In addition, Gazprom further develops the centrally-controlled physical cash pooling system, which makes it possible to redistribute liquidity within the Group's companies in the best possible way, reduces their need for external financing and provides additional revenues from the placement of temporarily disposable funds. The cash pooling system already includes the accounts of 484 Group's companies based in Russia and abroad, and more than 160 companies are at different stages of connection.

Full control over the settlements of the 140 largest subsidiaries of the Group in line with best Russian and international practices is maintained by a special service center – the Unified Settlement Center of Gazprom. Work is underway to connect other Group's subsidiaries to the center.

It was highlighted that the Company closely follows the instructions of the Russian Federation Government with regard to operating cost reduction: the corresponding KPI was included in the KPI system of Gazprom. It is planned to set this indicator at 2 per cent as a target for 2020.

The Management Committee was tasked with continuing the Company's cost optimization efforts in 2020.

The Gazprom Board of Directors took note of the information about the ongoing implementation of advanced digital technologies within the Gazprom Group.

It was highlighted at the Board Meeting that the use of digital technologies within Gazprom is aimed at further improving the flexibility and effectiveness of the Company's corporate governance and contributes to achieving its strategic goals.

Work continues on the integration of information management systems, which enable the automation of the Gazprom Group's core business processes, such as supervisory control, accounting and taxes, and management operations in maintenance and repairs, investments, procurement, finance, marketing and sales, and property and human resources.

The level of information system development which has been achieved serves as a sufficient base for the widespread introduction of digital solutions at the Gazprom Group. A special focus is on the creation of a platform for vertical integration of the whole variety of elements, from instrumentation and control equipment and automated process management systems to management systems adopted at Gazprom.

The Company is pursuing the 2018–2022 Comprehensive Target Program for the Development of the Integrated Information Environment. One of the Program's basic principles – innovativeness – provides for the partial use of an advanced business management model (Industry 4.0 concept) taking into account the industry-specific requirements of the Gazprom Group. The purpose of these technologies is to support the adoption of managerial decisions on the basis of forecasting models in uncertain external environment and rapidly changing circumstances.

Gazprom is actively adopting end-to-end digital technologies, which include, in particular, robotic systems, neurotechnologies, and artificial intelligence technologies applied in big data analysis.

As part of efforts to expand digital cooperation with state authorities, a program is currently underway for the transition of the Gazprom Group companies to the tax monitoring regime. To date, seven companies of the Gazprom Group have transitioned to this form of tax control.

The Management Committee was instructed to carry on with the deployment of advanced digital technologies within the Gazprom Group.

A Gazprom delegation headed by Vyacheslav Mikhalenko, Member of the Management Committee, Head of Department, took part in the keel-laying ceremony for Chaika LNG, the first passenger ship in Russia to be powered by liquefied natural gas (LNG). The event was held at the shipyard of Zelenodolsk Plant named after A.M. Gorky in Zelenodolsk, Republic of Tatarstan.

The ceremony was also attended by Rustam Minnikhanov, President of the Republic of Tatarstan, Yury Kostin, Director of the Department of State Policy for Maritime and River Transport at the Ministry of Transport of the Russian Federation, Andrey Dmitriev, Director General of Gazprom Gazomotornoye Toplivo, Ivan Egorov, Director General of Ak Bars Holding Company, and Alexander Karpov, Director General of Zelenodolsk Plant named after A.M. Gorky.

The Chaika LNG leisure and sightseeing boat (motor ship) is intended for passenger voyages, including via tourist routes. The vessel, which can accommodate at least 170 people, is expected to be launched as early as this year.

The use of natural gas in river and maritime transport is a new segment of the NGV market. Today, LNG is the most promising motor fuel for waterborne transport and the most affordable alternative to bunker fuel oil and diesel fuel.

The Republic of Tatarstan is a unique location from a logistics standpoint, and it has robust transport potential in terms of cutting-edge industrial technologies. It is planned that the region will produce LNG-powered tourist ships and Gazprom will be responsible for refueling said ships.

Vyacheslav Mikhalenko and Rustam Minnikhanov held a meeting in Zelenodolsk on the development of the NGV refueling network in the Republic of Tatarstan.

It was noted that the number of NGV refueling units in the region has doubled to 20 since 2016, including the CNG filling station built in Almetyevsk in late 2019. The amount of gas consumed as a vehicle fuel is growing in Tatarstan: in 2019, consumer sales of gas went up by 39 per cent from 2018 and by 70 per cent from 2017.

This year, Gazprom plans to build two new CNG stations in Zainsk and Nurlat, as well as to renovate and upgrade a CNG station in Buinsk. The Company is considering the possibility of constructing a number of other NGV refueling units in Tatarstan. Meanwhile, efforts are underway to set up infrastructure for LNG production and refueling of road and waterborne transport.

A working meeting between Alexey Miller, Chairman of the Gazprom Management Committee, and Sergey Chemezov, Director General of the state-owned Rostec Corporation, took place today in Moscow.

The meeting participants reviewed the potential areas of cooperation between Gazprom and Rostec enterprises, including the transportation of liquid helium from the Amur Gas Processing Plant (GPP) for the purpose of exporting it via the Logistics Center in the Primorye Territory.

Gazprom Gazenergoset Geliy, Gazprom Gazomotornoye Toplivo, and KAMAZ (part of Rostec) signed a Cooperation Agreement in the presence of Alexey Miller and Sergey Chemezov.

According to the document, Gazprom Gazenergoset Geliy (the company authorized to implement the Helium Tank Logistics Center investment project) plans to purchase gas-powered vehicles to transport liquid helium. To that end, freight trucks powered by liquefied natural gas (LNG) will be used. Batch production of these trucks will be carried out at the facilities of KAMAZ. The infrastructure for producing LNG and refueling these trucks will be set up by Gazprom Gazomotornoye Toplivo.

As a follow-up to the Agreement, Gazprom Gazenergoset Geliy and KAMAZ signed an Action Plan (roadmap). The first 18 LNG-powered trucks that will transport helium in special thermally-insulated containers are expected to be delivered in 2021.

The Gazprom Management Committee took note of the information about the Company's international marketing strategy.

It was highlighted that Gazprom is the largest gas supplier to Europe. In December, the Company started delivering pipeline gas to China. In addition, LNG from the Gazprom Group's portfolio is being supplied to the Asia-Pacific region and elsewhere.

Gazprom's marketing strategy is aimed at maintaining and strengthening the Company's leadership position in the European market, as well as at scaling up its presence in Asia-Pacific and across the globe.

The Company's competitive advantages include a vast resource base sufficient for providing reliable gas supplies to the domestic and foreign markets for many decades to come; a well-developed gas transmission system in Russia and a robust network of export routes; its own Electronic Trading Platform and e-trading capabilities; and a track record of strong partnerships with international energy companies.

Gazprom is keeping track of new trends and developments in international energy markets and taking them into account in its activities. Moreover, it is looking into the possibility of implementing hydrogen energy projects, including technologies related to the production of hydrogen from natural gas without CO2 emissions.

The meeting participants reviewed key events associated with the marketing strategy.

The issue of the marketing strategy will be submitted for consideration by the Gazprom Board of Directors.

The Gazprom Management Committee reviewed the information on improving the payment discipline with regard to domestic gas supplies, as well as on the measures being taken to settle the outstanding consumer debt for the gas supplied, including the interaction with government authorities to perfect the current legislation that regulates the procedure of paying for gas.

It was noted that the Company is making systematic efforts to improve the payment discipline among domestic consumers. Work to that end is coordinated by a special-purpose Commission at the Board of Directors.

These measures have yielded significant results: for the first time in many years, the overdue consumer debt for gas supplies has been reduced. As of January 1, 2020, the debt amounted to RUB 174.9 billion, down by 2.9 per cent, or RUB 5.3 billion, from the year before (RUB 180.2 billion). The number of Russian regions with reductions in overdue consumer debt went up from 30 to 34 in 2019. These constituent entities include first and foremost the Krasnodar Territory and the Kemerovo, Kurgan, Moscow and Novgorod Regions. In addition, improvements in the consumer payment discipline were observed in North Caucasus republics, namely Chechnya, Dagestan and Ingushetia.

The level of gas payments across all consumer groups in Russia rose by 0.2 per cent in 2019, reaching 98 per cent.

The biggest reduction in terms of debt among consumer groups was demonstrated by heat suppliers. In 35 regions, the debt of heat suppliers dropped by RUB 7.3 billion in total. Six constituent entities – the Moscow, Yaroslavl, Novgorod and Kemerovo Regions, as well as the Krasnodar and Khabarovsk Territories – accounted for a half of that amount.

The outstanding debt of private consumers went down by more than RUB 2 billion to RUB 75 billion in 2019, with the level of payments by the population standing at 90.5 per cent. It should be noted that North Caucasus regions account for over 88 per cent of the debt owed by private consumers. Gazprom enhanced its systematic efforts across North Caucasus in order to take stock of and update its subscriber bases: in 2019, the Company checked 1.5 million subscriber accounts and identified 4 million square meters of unaccounted-for heated areas along with 38,000 units of gas equipment and 84,000 consumers. As a result, bills were drawn up for 167 million cubic meters of gas, an increase of 70 per cent against 2018.

With a view to raising the level of gas payments by private consumers and to creating favorable conditions for consumers during the payment procedures, Gazprom intensified its efforts to introduce state-of-the-art smart gas meters and online payment forms via the Subscriber Account online service in 2019. The service saw its subscriber base grow by 37 per cent in 2019, with the number of users reaching 3.4 million and the amount of collected payments rising by 57 per cent to about RUB 5 billion.

The Company continues to file legal claims to collect debt and expands its cooperation with regional authorities and law enforcement agencies. As part of these efforts, Gazprom collected RUB 172.47 billion in 2019 (compared to RUB 166.4 billion in 2018).

Nevertheless, the amount of outstanding debt is still quite large. Aiming to maintain the positive momentum, Gazprom is taking part in preparing proposals on streamlining the legislation with regard to gas supplies. Specifically, 2019 saw the coming into force of amendments to the Housing Code and the Criminal Code, which were adopted at the initiative of Gazprom. The amendments had a favorable impact on the consumer payment discipline as well. Amendments were also made to the Federal Law on Gas Supply, thereby enabling the Russian Government and its authorized agencies to adopt calculation procedures for damages incurred as a result of tapping in gas supply networks.

Gazprom continues to work towards streamlining the legislation. Currently, 148 initiatives are being elaborated so as to improve the efficiency of operations in the domestic gas market, including with respect to strengthening the payment discipline.

The Management Committee was instructed to work further to improve the consumer payment discipline and reduce the overdue debt.

The issue of improving the payment discipline with regard to domestic gas supplies, as well as on the measures being taken to settle the outstanding consumer debt for the gas supplied, including the interaction with government authorities to perfect the current legislation that regulates the procedure of paying for gas will be submitted for consideration by the Gazprom Board of Directors.

On February 19, 2020, the Board of Directors elected Mikhail Rosseev as a Member of the Gazprom Management Committee for a five-year term.

A working meeting between Alexey Miller, Chairman of the Gazprom Management Committee, and Rainer Seele, Chairman of the Executive Board of OMV, took place today in Moscow.

The parties discussed the state and prospects of cooperation, focusing in particular on gas supplies. It was noted that the overall exports of Russian pipeline gas to Austria reached an all-time high in 2019 at 14.1 billion cubic meters, an increase of 14.6 per cent against the record year of 2018.

Special attention was paid to the Nord Stream 2 gas pipeline construction project.

A working meeting between Alexey Miller, Chairman of the Gazprom Management Committee, and Davaa Dulamsuren, Ambassador Extraordinary and Plenipotentiary of Mongolia to the Russian Federation, took place today in Moscow.

The parties discussed issues related to the potential implementation of the project for pipeline gas supplies from Russia to China across Mongolia. Among the topics discussed was the establishment of a joint working group to elaborate the project.

Elena Vasilieva has been replaced as Deputy Chairman of the Management Committee – Chief Accountant of Gazprom by Mikhail Rosseev, former Deputy Chief Accountant.

The relevant decisions on the termination of membership in and election to the Gazprom Management Committee will be adopted by the Company's Board of Directors.

Anatoly Titov has been replaced as Director General of Gazprom Transgaz Tomsk by Vladislav Borodin, former Deputy Head of Department 645 at Gazprom.

Vladimir Kiyaev has been replaced as Director General of Gazprom Dobycha Orenburg by Oleg Nikolaev, former Chief Engineer – First Deputy Director General of Gazprom Dobycha Yamburg.

Elena Vasilieva, Anatoly Titov, and Vladimir Kiyaev have been relieved of their posts due to retirement.

Pavel Oderov has been replaced as Head of Department 512 at Gazprom by Dmitry Khandoga, former Deputy Head of this Department.

Pavel Oderov has been appointed Deputy Director General for Foreign Trade at Gazprom Neft and Deputy Director General of Gazprom Export.

Mikhail Sereda has been appointed First Deputy Director General of Gazprom Export and Director General of Gazprom Trading, a newly-formed wholly-owned subsidiary of Gazprom.

The post of Deputy Chairman of the Management Committee – Head of the Management Committee Administration has been terminated.

Vyacheslav Koptelov, former Deputy Head of Directorate at Department 201, has been appointed Head of the Management Committee Administration.

Irina Milyutina, former Deputy Head of Directorate at Department 201, has been appointed Head of Department 101 (formerly Department 201).

A working meeting of Alexey Miller, Chairman of the Gazprom Management Committee, with Vladimir Semashko, Ambassador Extraordinary and Plenipotentiary of the Republic of Belarus to the Russian Federation, and Viktor Karankevich, Belarusian Minister of Energy, took place today in St. Petersburg. The parties reviewed issues related to cooperation in the gas sector.

Alexey Miller and Vladimir Semashko signed the Protocol between Gazprom and the Government of the Republic of Belarus outlining the pricing procedure for natural gas supplies to Belarus in 2020.

Today, Gazprom's 15thannual Investor Day was launched in New York.

Taking part in the event are Famil Sadygov, Deputy Chairman of the Gazprom Management Committee, Elena Burmistrova, Deputy Chairman of the Gazprom Management Committee and Director General of Gazprom Export, Kiril Polous, Head of Directorate, and representatives of the Company's relevant subdivisions and its subsidiaries.

These executives are meeting with investors and analysts of international investment funds and credit institutions from the US, the UK, Russia, continental Europe, and the Asia-Pacific region.

Gazprom's representatives made presentations on the main outcomes of the Company's work in 2019 with regard to its key activities, gave their assessments of the trends observed in the target sales markets, and spoke about the plans for further development.

Kiril Polous delivered a presentation on Gazprom's strategy, outlining the Company's development goals for the next decade. It was noted that the Company will ensure stable growth in gas production over the long term mainly through developing fields in new gas production centers located in the Yamal Peninsula and eastern Russia. Transmission capacities will be launched concurrently with the implementation of new production projects. The launch of large gas processing facilities in the Amur and Leningrad Regions will make it possible to diversify sources of income and monetize the reserves of multi-component gas.

In the domestic market, Gazprom's priorities are to provide reliable gas supplies to consumers and continue to expand gas infrastructure. In the primary export market, i.e. in Europe, Gazprom intends to strengthen its leading positions by using flexible market mechanisms and enhancing supplies via high-tech gas pipelines, which leave a minimal carbon footprint. In a longer-term perspective, carbon footprint from supplies will be additionally reduced through the use of methane-hydrogen fuel. Increased exports of Russian pipeline gas to China will allow Gazprom to diversify the directions of its sales, and the launch of new facilities for natural gas liquefaction will extend the Company's access to remote gas markets.

Elena Burmistrova reported on the prospects and benefits of work in a dynamic gas market. Gazprom closely follows the ongoing developments and takes the necessary measures to mitigate a number of adverse factors affecting the suppliers today. By commissioning its ambitious pipeline projects, i.e. Power of Siberia and TurkStream, Gazprom is further enhancing its position as the world's largest supplier of natural gas – the most eco-friendly fossil fuel.

Gazprom remains the leading exporter in Europe. Despite the weather factor and growing LNG supplies to European countries, the Company's pipeline exports to countries beyond the former Soviet Union (including China) were maintained near the record highs at 199.3 billion cubic meters in 2019. According to provisional data, Gazprom's share in the gas consumption of Europe and Turkey stands at 35.6 per cent. Elena Burmistrova described the tools being used by the Company to meet the new challenges and trends in the global gas market. These include the promotion of e-trading via the Electronic Trading Platform. More than 16.5 billion cubic meters of gas has been sold through the ETP since September 2018.

Elena Burmistrova paid special attention to the issues of pricing and the export contract model. Gazprom's contract model offers favorable prices coupled with reliable and flexible supply conditions, which makes Russian pipeline gas the most competitive in the market. The pricing mechanism embedded in the Company's export contracts can be easily adjusted to European market changes. Low operating costs, efficient gas pipeline routes, and Gazprom's vast resources guarantee profitability even amid low prices.

Famil Sadygov outlined the key results of the implementation of Gazprom's financial strategy, stressing that the Company's financial performance was consistent in the previous year despite unfavorable market conditions. According to estimates, the Group's net profit in 2019 exceeded USD 21 billion, revenues surpassed USD 120 billion, and the free cash flow remained positive. Such results were produced, inter alia, through continuous optimization of operating and investment costs, as well as rigorous cost control.

Famil Sadygov also recalled that Gazprom's share price underwent a fundamental reevaluation by Russian and foreign investors in 2019. Over that year, the volume of trading in the Company's securities grew 2.5-fold at London Stock Exchange and more than 3-fold at Moscow Exchange. In 2019, Gazprom's share price skyrocketed by 87 per cent in dollar terms, and the Company took the lead in the Russian stock market in terms of capitalization. It should be noted that Gazprom considers its securities to have considerable potential for further price growth.

Among the most important events of 2019 was the adoption of the new revision of Gazprom's Dividend Policy. According to the document, dividends will be calculated on the basis of the net profit of the Group under International Financial Reporting Standards adjusted with regard to five non-monetary items. The target level of dividend payouts is at least 50 per cent of the net profit under IFRS, and the dividends will be financed primarily from free cash flow. This is why Gazprom will make even more efforts towards sustainable generation of positive free cash flow in the medium and long term.

Among other things, the Company intends to keep improving the effectiveness of its capital expenditures, including through a flexible investment program and more expansive application of project financing methods. Work will continue on reducing operating costs, with the ultimate goal of bringing them down by 2 per cent per year. In addition, a substantial contribution to Gazprom's strong financial performance will come from the new and yet-to-be-implemented projects of the Company, namely Power of Siberia, TurkStream, Nord Stream 2, the Amur Gas Processing Plant, and theintegrated complex for gas processing and liquefaction in Ust-Luga. According to the Company's estimates, these projects, when running at their full capacity, will add a total of USD 9 billion per year to Gazprom's EBITDA.

The Company is intent on developing its relationships with the investment community. Its plans include arranging more meetings of Deputy Chairmen of the Gazprom Management Committee with analysts and investors, upping the amount and improving the quality of disclosed information on issues such as sustainable development, and introducing new formats for engaging with the investment community.

Gazprom's representatives noted that the increase in major performance indicators – gas production and supplies to Russian and foreign consumers – will help the Company strengthen its foothold in the global energy industry. Meanwhile, optimization of capital expenditures and implementation of a flexible and well-balanced investment strategy will further raise the economic efficiency of Gazprom's activities and boost its investment attractiveness in the long term.

Currently, Gazprom's representatives are answering questions from investors and analysts.

The second meeting within the framework of the Investor Day will take place on February 13 in London.

A dancing group entitled “Uzory” (“The Patterns”) from the Ivanovskoye Gas Pipeline Operation Center (a branch of Gazprom Transgaz Nizhny Novgorod) won first prize at the Sun Circle international talent competition, which took place on January 25–26 in the city of Vladimir. 

The jury included associate professors and coaches from the Choreography Department of the Moscow State Institute of Culture, as well as choreographers of children's dance groups.

The dance team of Uzory comprising twelve girls aged 11–14 (coach Galina Tarasova) performed a piece entitled “National Circle Tromp Dance of Trans-Urals” and took first place in the competition. Lev Moiseev, Chairman of the primary trade union organization, was granted a commendation for supporting young talents, engaging youth in the promotion of healthy lifestyles, and ensuring the development of children's art and artistic and cultural values.

The Company's Board of Directors resolved to hold the annual General Shareholders Meeting of Gazprom on June 26, 2020, in St. Petersburg.

The list of persons entitled to participate in the Shareholders Meeting will be drawn up on the basis of Gazprom's Register of Shareholders at the end of the business day on June 1, 2020.

The Board of Directors approved the lists of nominees for the Gazprom Board of Directors and Audit Commission to be voted on at the Shareholders Meeting.

The Board of Directors included the following items in the Shareholders Meeting agenda:

• on the approval of the Company's Annual Report;
• on the approval of the Company's Annual Accounting (Financial) Statements;
• on the approval of the distribution of the Company's profit based on the results of 2019;
• on the amount, period and form of the dividend payout based on the results of 2019, as well as on the date when the list of persons entitled to receive dividends is drawn up;
• on the approval of the Company's Auditor;
• on the remuneration for the Board of Directors Members, who are not governmental officials, in the amount established by the Company's regulatory documents;
• on the remuneration for the Audit Commission Members, who are not governmental officials, in the amount established by the Company's regulatory documents;
• on the approval of the revised Regulation on the Audit Commission of Gazprom;
• on the election of the Board of Directors Members;
• on the election of the Audit Commission Members.

A working meeting between Alexey Miller, Chairman of the Gazprom Management Committee, and Evangelos Mytilineos, Chairman of the Board of Directors and CEO of Mytilineos S.A., took place today in Moscow.

The parties discussed issues related to natural gas supplies.

A Gazprom delegation headed by Vitaly Markelov, Deputy Chairman of the Gazprom Management Committee, paid a working visit to the People's Republic of Bangladesh.

As part of the visit, Vitaly Markelov and Syed Ashfaquzzaman, Corporate Secretary and Member of the Board of Directors of Petrobangla, signed a five-year Memorandum of Understanding for strategic cooperation.

In addition, Vitaly Markelov had a working meeting with Sheikh Hasina, Prime Minister of the People's Republic of Bangladesh. The parties discussed the prospects of cooperation in the energy sector.

A joint scientific and practical conference of TMK and Gazprom took place today. The conference was focused on the use of innovative solutions in developing new hydrocarbon fields. The event was held at the recently opened R&D center of TMK in Skolkovo.

The conference participants discussed the prospects of cooperation in designing new products and took part in a roundtable entitled “Modern Domestic Technologies for Onshore and Offshore Hydrocarbon Prospecting, Production and Transportation: Future Requirements, Trends and Tendencies.” At the end of the event, the promising areas of work were outlined for the next five-year scientific and technical cooperation program between Gazprom and TMK.

“The expansion of hydrocarbon production in new regions gives rise to new technological challenges and stricter requirements to equipment, its reliability and efficiency. In order to work out the best solutions, we need to engage the expert community as much as possible, as well as to use the innovative potential of the external environment. Today's pipe-themed conference in Skolkovo is a great example of using cutting-edge innovative infrastructure to advance sci-tech cooperation between equipment manufacturers and consumers,” said Maxim Nedzvetsky, Deputy Head of Department at Gazprom, Director General of Gazprom VNIIGAZ.

“The conference has given us a great opportunity to openly discuss the existing and future projects, outline solutions and exchange experience together with numerous specialists, engineers and scientists. I firmly believe that both we and our colleagues from Gazprom and Gazprom VNIIGAZ will continue gatherings of this kind, as they are extremely helpful in developing innovative products,” said Sergey Chikalov, Deputy Director General for Technical Sales and Innovations at TMK.

Within the framework of the conference, Maxim Nedzvetsky and Igor Pyshmintsev, heads of Gazprom VNIIGAZ and TMK's R&D center, signed an agreement for cooperation and collaboration. The agreement provides for R&D activities with the purpose of designing high-potential products and technologies, as well as improvement and drafting of regulatory documents.

The conference participants viewed unique equipment installed at TMK's R&D center during a tour led by Igor Pyshmintsev. The equipment is the only set of test benches for full-scale physical tests of pipes, fittings and other complex structures in Russia. The benches can be used to carry out studies involving tensioning, compression, bending with high external and internal pressure and extreme temperature conditions.

A working meeting between Alexey Miller, Chairman of the Gazprom Management Committee, and Vagit Alekperov, President of LUKOIL, took place today in Moscow.

In the course of the meeting, the parties discussed their current and future cooperation in the gas sector. In particular, attention was paid to the ongoing preparations for setting up a joint venture to develop the Vaneyvisskoye and Layavozhskoye fields.

Gazprom supplied its first billion cubic meters of gas via the TurkStream gas pipeline.

Of that amount, about 54 per cent went to the Turkish gas market and some 46 per cent was delivered to the Turkey-Bulgaria border.

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On January 11–18, Ufa hosted the All-Russian Tennis Tournament held with support from Gazprom Transgaz Ufa. The tournament brought together over 60 participants up to 15 years old from across the Republic of Bashkortostan, as well as from Moscow, Sochi, Izhevsk, Chelyabinsk, Magnitogorsk, and Samara. The children competed on one of the best tennis courts in Ufa, in the Prestige Academy of Tennis.

By the decision of the organizers, the tournament was dedicated to the honored worker of Russia's oil and gas sector Mukhamatnur Valeev, who headed Bashtransgaz (now Gazprom Transgaz Ufa) for almost 25 years. As a Master of Sports of the USSR in boxing, Mr. Valeev contributed greatly not only to the gas sector development, but also to the promotion of professional and amateur sports in the Republic of Bashkortostan.