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Press Release

On Gazprom delegations working visit to Primorsky Krai

Nov. 20, 2009 - A Gazprom delegation led by Alexander Ananenkov, Deputy Chairman of the Company's Management Committee paid a working visit to the Primorsky Krai. The delegation included Yury Shamalov, Director General of Gazflot, Alexander Mandel, Director General of Gazprom dobycha shelf, Yury Komarov, Chief Executive Officer of Shtokman Development AG.

During the visit the Gazprom delegation took part in the construction launch ceremonies for two shipyards: one in the Chazhma Bay (a joint project between United Shipbuilding Corporation (USC) and Singapore's Yantai Raffles Shipyard Co. Ltd) and the other in the town of Bolshoy Kamen (a joint project between USC and South Korea's Daewoo Shipbuilding and Marine Engineering). These shipyards are planned to produce modern heavy-tonnage vessels, including LNG carriers, floating drilling rigs and production platform topsides for Gazprom and other companies.

As part of the visit Gazflot and United Shipbuilding Corporation signed an Agreement of Cooperation. The Agreement sets out the fundamental agreements on the construction of supply vessels, floating drilling rigs and LNG carriers.

The Gazprom delegation also took part in the meeting headed by Igor Sechin, Deputy Chairman of the Government of the Russian Federation on the Russian shipbuilding development plans over the med-term perspective. The meeting participants noted that the need for new shipbuilding capacities was driven by the growing demand for state-of-the-art marine equipment. The national shipbuilding development will bolster an advance of new technologies, including in related industrial sectors and will increase Russia's share in the world shipbuilding and marine transportation.

"The signed Agreement opens new horizons for developing the domestic shipbuilding in the Primorsky Krai, creating new jobs and developing the social infrastructure. It should be also noted that the Agreement has become an important step in implementing the Eastern Gas Program," emphasized Alexander Ananenkov.



Background

The initial aggregate hydrocarbon resources of Russia's continental shelf average 100 billion tons of fuel equivalent, of which around 80 per cent is gas. The bulk of the hydrocarbon resources (around 70 per cent) are concentrated in the Barents, Pechora and Kara Seas, with gas and condensate prevailing in the Barents and Kara Seas, and oil - in the Pechora Sea

Gazprom considers the Barents, Kara, Pechora and Caspian Sea shelves, the Ob and Taz Bays, the Okhotsk Sea shelf, including the Sakhalin Island and western Kamchatka shelf as the major promising offshore areas.

For offshore field development purposes in September 2005 Gazprom developed and approved the Program of actions aimed exploiting hydrocarbon resources offshore the Russian Federation to 2030.

The Program stipulates comprehensive and by-stage development of offshore hydrocarbon resources and application of state-of-the-art and highly efficient technologies in all areas of operations taking into account the best practices worldwide.

At the moment Russia's shipbuilding companies fulfill Gazprom orders on the equipment manufacture for the Arctic shelf development.

In Severodvinsk, Sevmash Production Association is constructing the Prirazlomnaya offshore ice-resistant stationary platform, Zvezdochka Shiprepairing Center - the Arkticheskaya jack-up floating drilling rig, Vyborg Shipbuilding Plant - the Severnoye Siyanie (Northern Lights) and the Polyarnaya Zvezda (Polar Star) semi-submersible drilling rigs.

Gazprom has arranged for facility engineering actions for the Russian shelf development. The Krylov Shipbuilding Research Institute has developed by Gazprom's order a draft concept of an offshore ice-resistant drilling rig, engineering designs for eleven vessels to ensure offshore fields pre-development; work is underway on the engineering design for a mobile floating drilling rig. The Institute is also engaged in developing the Program for floating facility construction and utilization in offshore oil and gas field development to 2030.

It is planned that through 2020 the Company will need over ten drilling and technological platforms, over 60 vessels and various floating & technical facilities as well as up to 23 LNG carriers to develop Russia's continental shelf.


2009-11-24

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