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Press Release

Prirazlomnaya platform delivered to field

Aug. 26, 2011 - Today the Prirazlomnaya offshore ice-resistant stationary platform has been delivered to the Prirazlomnoye field in the Pechora Sea.

Experts are to fix the platform on the seafloor at a previously prepared site. Afterwards, they will start to surface the platform perimeter with crushed rock and granite fraction. This is required for preventing the soil erosion and platform movement from the drilling location.

Following the completion of this operation as well as the startup activities at the drilling facilities, the first production well drilling will commence at the Prirazlomnoye field. The drilling is planned to begin before late 2011.

Background

Prirazlomnaya is the first offshore ice-resistant stationary platform designed and built in Russia. The platform measuring 126 meters wide by 126 meters long has the unballasted weight of 117 thousand tons. The crew of up to 200 people will provide for all the year round operation of the platform.

The platform will provide for every process operation at the Prirazlomnoye field: drilling, production, oil storage, preparation and shipment of final products. The platform is fully adapted for operating in severe natural and climatic conditions and designed for the maximum ice loads.

Gazprom neft shelf (Gazprom's fully-owned subsidiary) is the construction customer. Morneftegazproekt is the general designer, and the Sevmash Production Association is the general contractor.

Special attention during the Prirazlomnaya construction was placed on the environmental safety issues. In particular, a zero discharge system of drilling and production wastes was created on the platform. The wastes will be injected into the special absorption wells or, if necessary, will be collected in containers and transported to the coast for subsequent utilization. Associated petroleum gas will be used for the platform needs.

The Prirazlomnoye oil field is located on the Pechora Sea shelf 60 kilometers off the shore. It contains 72 million tons of oil reserves enabling to achieve the annual production level of more than 6 million tons. The field development will be a pilot project on developing the Russian Arctic Shelf and is of crucial significance for Gazprom Group's oil business strategy.

The initial aggregate hydrocarbon resources of the Russian continental shelf make up some 100 billion tons of fuel equivalent, of which 80 per cent is gas. The bulk of the hydrocarbon resources (over 80 per cent) is concentrated in the Barents, Pechora, Kara Seas and the Sea of Okhotsk, with gas and condensate prevailing in the Barents and Kara, and oil - in the Pechora Sea, while the Sea of Okhotsk contains both oil and gas resources.

Gazprom's plans on the Russian continental shelf development are determined by the Program for hydrocarbon resources development on the Russian Federation shelf until 2030 adopted by the Gazprom Board of Directors in April 2011. The Program implementation will enable Gazprom to annually produce over 200 billion cubic meters of gas (without regard to gas from Sakhalin II) and some 10 million tons of oil on the Russian shelf by 2030.


2011-08-29

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pr@gazprom.ru

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