Gazprom history 2006 On January 1

On April 28, the Gazprom Management Committee approved the updated draft budget (financial plan) and investment program of Gazprom for 2006, taking into account information on the consolidated Gazprom and Sibneft budget for 2006.

On April 28, a network schedule for the construction of gasification facilities in the Kurgan Oblast as well as the Agreement of cooperation between Gazprom and the Administration of the Kurgan Oblast were signed.

In April Gazprom firstly supplied LNG to the Isle of Grain terminal (Great Britain).This operation was effectuated through Gazprom subsidiary Gazprom Marketing & Trading. The volume of the LNG averaged 140,000 cu m (85 MMcm of natural gas).

On May 5, festive events were held as reconstruction of the third (main) startup complex, a part of Orenburggazprom helium plant had been completed. The commissioning of the third startup complex enables to increase its design capacity in certain production sectors. Additionally, reconstruction completion promotes reliability and safety at the helium plant.

On May 12, within the working visit paid by Gazprom delegation to Romania Gazprom export and trade company Conef inked a Preliminary Agreement stipulating the conclusion of a long-term contract on Russian gas supply.

On May 12, a synchronized construction schedule for regional gasification facilities in the Vologda Oblast were inked between Gazprom and the Vologda Oblast Administration.

On May 12, a synchronized construction schedule for regional gasification facilities in the Nizhny Novgorod Oblast was inked between Gazprom and the Nizhny Novgorod Oblast Administration.

On May 12, a synchronized construction schedule for regional gasification facilities in the Tula Oblast was inked between Gazprom and the Tula Oblast Administration.

On May 16, a synchronized construction schedule for regional gasification facilities in the Ivanovo Oblast was inked between Gazprom and the Ivanovo Oblast Administration.

On May 16, the Gazprom Headquarters hosted a working meeting between Alexey Miller, Chairman of the Gazprom Management Committee and Rumen Ovcharov, Economy and Energy Minister of the Republic of Bulgaria. The parties pointed to the need of switching prospectively to gas transit market rates. The meeting resolved to shortly prepare proposals for the transit terms ensuring the balance of interests and taking into account the possibility of boosting transit volumes and creating new gas transmission capacities in the Republic.

On May 17, a synchronized construction schedule for regional gasification facilities in the Lipetsk Oblast was inked between Gazprom and the Lipetsk Oblast Administration.

On May 17, a synchronized construction schedule for regional gasification facilities in the Tambov Oblast was inked between Gazprom and the Tambov Oblast Administration.

On May 19, the Gazprom Management Committee convened on its ordinary meeting and heard a report on subsidiary operating results over 2005. Special attention was paid to issues surrounding the United Gas Transmission System debottlenecking and reliability increase.

On May 23, the Gazprom Headquarters hosted a working meeting between Alexey Miller, Chairman of the Gazprom Management Committee and Gholamreza Ansari, Ambassador Extraordinary and Plenipotentiary of the Islamic Republic of Iran to Russia. The parties addressed issues of bilateral cooperation in the oil & gas sector under agreements achieved earlier. In particular, the parties discussed potential interaction in the gas production, transmission and use sector.

On May 23, a synchronized construction schedule for regional gasification facilities in the Novosibirsk Oblast was inked between Gazprom and the Novosibirsk Oblast Administration.

On May 24, the Board of Directors reappointed Alexey Miller as the Gazprom Management Committee Chairman in view of expiry of his term of office.

On May 24, the Board of Directors resolved to hold the Gazprom Annual General Shareholders’ Meeting on June 30, 2006. The Board also resolved to provisionally endorse and submit for the Shareholders’ Meeting approval the Gazprom 2005 Annual Report and the Gazprom (parent company) 2005 financial accounts prepared in accordance with Russian legislation.

On May 25, the Management Committee endorsed the Gazprom oil business development strategy stipulating annual crude recovery to be boosted to 80 mln t by 2020. The oil business will be developed on the vertical integration basis. Implementing this strategy will help reinforce Gazprom standing in the internal and external markets as an efficient multi-profile petroleum company, expand the development of Gazprom oil reserves and create additional conditions for enhancing Gazprom market capitalization and improving its bottom line. The Management Committee resolved to submit the strategy for the Board of Directors’ approval.

On May 26, the Gazprom Headquarters hosted a working meeting between Alexander Medvedev, Deputy Chairman of the Gazprom Management Committee and Nobuo Seki, President & CEO of Chiyoda Corporation (Japan). The parties addressed the prospects for cooperation within Gazprom-led Shtokman and Baltic LNG projects.

On May 26, Moscow hosted the 9^th National Award “the Golden Diploma 2006” organized by the Russian Financial Press Club. Sergey Kupriyanov, Press Secretary of the Gazprom Management Committee Chairman was entitled to the special diploma “For actively maintaining dialogue with Russian media and personal contribution to promote transparency in fuel and energy complex”.

On May 29-31, Gazprom delegation paid a visit to the People's Democratic Republic of Algeria. Within the visit Alexander Medvedev, Deputy Chairman of the Gazprom Management Committee met with Abbas Fazal, Secretary General of the Algerian Energy & Mining Ministry and Mohamed Meziane, President and Chief Executive Officer of Sonatrach. The parties addressed issues surrounding deeper multilateral cooperation between Gazprom and Algeria and the oil & gas sector. In particular, the parties reviewed possibilities of jointly implementing “full cycle” projects encompassing hydrocarbon exploration, production, transmission, processing and marketing in Algeria, Russia and third countries.

On May 30, a synchronized construction schedule for regional gasification facilities in the Bryansk Oblast was inked between Gazprom and the Bryansk Oblast Administration.

In May, upon decision of the Moscow Patriarchy Gazprom was granted a special award “for Activity Aiming to Consolidate the Unity of Orthodox Christian Peoples”. The award was handed to Alexey Miller, Chairman of the Gazprom Management Committee, by the Patriarch of Moscow and All Russia Alexiy II personally.

In May, Gazprom won the Finance Magazine prize instituted to honor organizations and the most outstanding achievements in the financial sector. The Company was recognized as the leader of the Largest Capitalization Growth nomination.

In May, Gazprom specialists chaired by Alexander Ananenkov, Deputy Chairman of the Gazprom Management Committee were entitled to the International Fuel and Energy Association Prize in the name of N.K. Baibakov. The Prize was awarded for an integrated research addressing the impact of northern climate conditions on a man described in the Social Aspects surrounding the technical regulation of shift work method under the Far North conditions.

In May, Moscow hosted the Best Corporate Media 2006 Award presentation ceremony. The jury elected Gazprom official web-site, www.gazprom.ru, the best in the Customer Edition/Electronic Media nomination.

On June 1, a working meeting between Alexey Miller, Chairman of the Gazprom Management Committee and Zsolt Hernadi, Chairman – Chief Executive Officer of the Hungarian oil & gas company MOL was held. The parties pondered on further cooperation deepening in hydrocarbon extraction and Russian natural gas transit across Hungary to European countries. Additionally, the parties looked into joint implementation of projects covering construction of new and upgrading of existing underground gas storage facilities in Hungary.

In early June, Gazprom delegation headed by Alexey Miller, Chairman of the Gazprom Management Committee took part in the 23rd World Gas Conference. At the 23rd WGC the delegation members presented 44 reports. Within the Conference Alexey Miller held talks with representatives of foreign oil and gas companies such as E.ON Ruhrgas, Shell, Chevron, Gasunie, Gaz de France, Petronas, BG Group, Sonatrach, Électricité de France. The parties discussed prospects for further cooperation in the oil and gas industry.

On June 13, led by Alexey Miller, Chairman of the Management Committee, Gazprom delegation took part in the 10th St. Petersburg International Economic Forum. In the course of the Forum Alexey Miller held meetings with Jeannot Krecke, Minister for the Economy and Foreign Trade of the Grand Duchy of Luxembourg, Fulvio Conti, Chief Executive Officer & General Manager of Enel, Eivind Reiten, President & Chief Executive Officer of Hydro and Helge Lund, President & Chief Executive Officer of Statoil. The parties addressed the prospects for further cooperation in the oil and gas sector.

On June 14, Alexey Miller, Chairman of the Gazprom Management Committee and Valentina Matviyenko, Governor of the city of St. Petersburg signed a synchronized construction schedule for the city's gasification facilities.

In mid July, Gazpromtrans, Gazprom subsidiary received the Golden Chariot, National Public Premium in transportation industry and recognized as the Leader of Russian Transportation and Shipping Industry for high achievements on the railroad transportation and shipping service market.

On June 16, Alexander Medvedev, Deputy Chairman of the Gazprom Management Committee and Kurt Bligaard Pedersen, Executive Vice President of DONG Energy (Denmark) inked the first Contract for Russian gas supply to Denmark. Under the Contract, gas deliveries to Denmark will start in 2011 and will be effectuated via the North European Gas Pipeline (now called the North Stream). DONG Energy is committed to annually buying within 20 years 1 bcm of gas, with Contract provisions stipulating potential increase in gas supply. The parties also signed a Contract, under which DONG Energy would supply gas to Gazprom Marketing & Trading entering the Gazprom Group of companies. The gas will be marketed within 15 years in the Great Britain starting from 2007. 600 MMcm/y will be pumped by the Langeled gas pipeline designed to link the Norwegian Ormen Lange gas field with the Great Britain.

On June 20, a synchronized construction schedule for regional gasification facilities in the Stavropol Krai was inked between Gazprom and the Stavropol Krai Administration.

On June 21, Gazprom and MOL Group entered into an Agreement on cooperation. In pursuance of the Agreement, the parties will set up a Project Company to be responsible for preparing a feasibility study for a project aimed at creating new transnational gas transmission capacities and an underground gas storage system on the Hungarian territory. The Agreement also contemplates deepening cooperation between the companies in regional investment projects in South, East and Central Europe.

On June 22, the Gazprom Headquarters hosted a meeting between Alexey Miller, Chairman of the Gazprom Management Committee and Vasily Tarlev, Prime Minister of the Republic of Moldova. The parties reached an accord to settle before this year’s October all issues relative to the conclusion of a long-term contract for gas supply to the Republic of Moldova. Under the contract, the price of gas will be determined under market-based principles through a pricing formula. Starting from the 3rd quarter of 2006 Russian gas supply to Moldova is projected to be priced at US$ 160 per 1,000 cu m.

On June 22, Gazprom purchased the retail business of Pennine Natural Gas Limited aimed at expanding direct retail sales for commercial and production consumers of Great Britain. The deal was made by Gazprom Marketing and Trading. Gazprom Marketing and Trading signed an agreement with Natural Gas Shipping Services Limited Company on providing administrative services for gas deliveries the consumer market of Great Britain.

On June 22, the Management Committee heard a report on the major results achieved between 2002 and 2005 during the implementation of the Program for the gas industry’s mineral resource base development up to 2030. The Management Committee tasked Gazprom core business units with preparing proposals on the creation of a specialized subsidiary to operate as a geological exploration customer.

On June 23, a working meeting of Alexey Miller, Chairman of the Gazprom Management Committee, Vladimir Semashko, Vice Premier of the Republic of Belarus and Dmitry Kazakov, Director General of Beltransgaz took place. The parties discussed the terms & conditions for cooperation in the gas sector over 2007. While the meeting the parties decided to compile a list of Belarusian companies being of interest for Gazprom, with their value assessment to follow. On the initiative of the Belarusian side, ABN Amro was identified as an independent auditor. The work embracing the asset list compilation and assessment will take into account the increase of Russian gas price for Belarus in 2007.

On June 23, a synchronized construction schedule for regional gasification facilities in the Krasnodar Krai was inked between Gazprom and the Krasnodar Krai Administration.

On June 26, a working meeting between Alexey Miller, Chairman of the Gazprom Management Committee and Nejad Hosseinian, Deputy Oil Minister of the Islamic Republic of Iran took place. The parties discussed possible directions for cooperation between Gazprom and Iranian oil & gas companies as well as agreed on concrete steps to promote the promising joint businesses. In particular, the parties underlined the top priority directions of interaction, namely joint exploration and development of oil & gas fields as well as transmission, usage and marketing of natural gas.

On June 26, Represented by ZGG GmbH Gazprom inked with LEVIT and SWGI GROWTH FUND (CYPRUS) LIMITED (the major shareholders of NOVATEK) a preliminary agreement to buy at market value an ownership interest (less than 20% of outstanding shares) in NOVATEK.

On June 28, led by Alexander Medvedev, Deputy Chairman of the Gazprom Management Committee, Gazprom delegation paid a visit to the Socialist People's Libyan Arab Jamahiriya. Within the visit the delegation met with Shukri Ghanem, Chairman of the Libyan National Oil Corporation (NOC). The meeting discussed potential joint businesses in the Libyan oil and gas sector as well as in third countries including North Africa. The parties also addressed prospects and possibilities for Gazprom participation in developing Libya’s gas infrastructure as well as in hydrocarbon production, transportation and processing projects. The meeting reached an accord to shortly sign a Memorandum covering all the above matters and major challenges to be addressed at the current stage of cooperation between Libya and Gazprom in the gas sector.

On June 28, Alexey Miller, Chairman of the Gazprom Management Committee met with Paolo Scaroni, Chief Executive Officer of ENI. The parties addressed the prospects for deeper cooperation as well as opportunities for interaction in new gas field development, on the Russian territory inclusive, and natural gas & LNG transportation, processing and marketing. A focus also fell on promising businesses in the Blue Stream project.

On June 29, in the course of the working visit of Gazprom delegation to Turkmenistan, Alexey Miller, Chairman of the Gazprom Management Committee met with Saparmurat Niyazov, President of the Republic of Turkmenistan. The meeting discussed issues of cooperation in the oil & gas sector. The parties confirmed that they would fully fulfill their commitments under the previously signed contracts for the supply of Turkmen natural gas. The parties also pondered on the terms for gas supply within 2007 under the long-term contract as well as on the possibility of acquiring this year extra gas volumes. The Turkmen side offered Gazprom to buy gas for US$ 100 per 1,000 cu m. Since the parties didn’t reach an agreement, the talks were suspended.

On June 29, Gazprom and ITERA Oil & Gas Company inked an Agreement on Partnership for 2006 to 2010. In accordance with the Agreement signed, ITERA will take part in expanding, reconstructing and modernizing the Gazprom Unified Gas Supply System as stipulated by the General Scheme for the Gas Industry’s Development up to 2030.

On June 29, a working meeting between the Gazprom Management Committee Chairman Alexey Miller and His Royal Highness Crown Prince Philippe of Belgium took place. The parties deliberated on potential development of cooperation between Russia and Belgium in the oil & gas sector, placing an emphasis on issues surrounding Russian natural gas supply to Belgium and transit to third countries. Special attention was paid to the construction of the North European Gas Pipeline intended to bolster diversification of Russian gas supply routes and expansion of gas transmission capacities in European countries including Belgium. The parties also addressed the prospects for joint study of underground gas storage options in Poederlee (Belgium).

On June 30, Moscow hosted the Annual General Shareholders’ Meeting of Gazprom. The Company’s stockholders with a total of 21,202,545,479 shares, which is 89.56% of their overall amount, took part in the Shareholders’ Meeting through the meeting members. As at May 12, 2006, the corporate Register of persons and legal entities entitled to participate in the Shareholders’ Meeting recorded 507,526 corporate equity owners with 23,673,512,900 shares. The Meeting members approved the Annual Report, the Annual Accounting Statements based on the 2005 results, the amount of annual dividend payments based on the 2005 results – RUR 1.5 per one share (more than 26% of increase compared with the last year rates) indicating that payments had reached the top level. The meeting approved modifications into the company’s Charter proposed by the Board of Directors, elected the Board of Directors comprising 11 persons, the Audit Commission and appointed PricewaterHouse Coopers Audit the company’s corporate auditor. After the meeting had been closed down the newly elected Board of Directors nominated Dmitry Medvedev, First Deputy Prime Minister of the Russian Federation as Chairman of the Board, and Alexey Miller, Chairman of the Gazprom Management Committee as Deputy Chairman.

In June, Gazpromtrans (specialized Gazprom subsidiary) was awarded with the National Prize in the Russian transport industry “Golden Cart”. The Prize was awarded in the “Leader of the transportation sector of Russia” nominee for achieving high results on the railroad shipping market and shipping services.

In June, Sochi hosted the 10-th International Tournament among football clubs of parliaments and the governments of the CIS countries. The winner of the tournament was Gazprom football team.

On July 3, a working meeting between Alexey Miller, Chairman of Gazprom Management Committee and Alexander Berdnikov, Head of the Altai Republic took place. The meeting addressed issues linked to the development of a General Scheme for gas supply to and gasification of the Altai Republic taking into account projected construction of the Altai gas pipeline. The meeting also discussed a range of social projects planned by Gazprom for implementation in the Republic.

On July 3, the winners of the Russian Press Favor Award Simpre-2005, the all-Russian premium were announced in five nominations: politics, business, culture, sports and society achievements. Gazprom was recognized in the Business nomination.

On July 6, the Gazprom Headquarters hosted a working meeting of Alexey Miller, Management Committee Chairman, Gazprom, Ivan Plachkov, Ukrainian Fuel & Energy Minister and Alexander Bolkisev, Chairman of the Board, Naftogaz of Ukraine. The main focus of the meeting fell on the Ukrainian gas balance in the second half of 2006, with special attention paid to the absence of gas needed by Naftogaz of Ukraine to fill underground gas storage facilities for subsequent supply to the population, utilities and budget sponsored companies of Ukraine during the 2006-07 autumn/winter heating season. At the suggestion of the Ukrainian side the meeting reviewed the issue of further operations by the International Consortium for the Ukrainian Gas Transmission System Management and Development.

On July 11, Alexander Ananenkov, Deputy Chairman of the Gazprom Management Committee met with Motoyuki Oka, President & CEO of Sumitomo Corporation took place. The parties appreciated the current progress in the bilateral cooperation and addressed the possibility of interacting within promising projects for liquefied natural gas production, transportation and marketing. The parties also reviewed proposals by Sumitomo Corporation covering the use of its technology and equipment at Gazprom owned upstream facilities.

On July 11, the Management Committee considered it expedient to create a Gazprom and KazMunayGas’ 50/50 joint venture on the platform of the Orenburg Gas Processing Plant. The Management Committee decided to enter with the Kazakh side into a long-term contract for the supply of gas from the Karachaganak field to the Orenburg Gas Processing Plant.

On July 12, the Board of Directors decided to form the Audit Committee of the Gazprom Board of Directors, with Boris Fyodorov re-elected as the Committee Chairman, and Bergmann Burckhard and Mikhail Sereda elected as the Committee Members.

On July 12, the Board of Directors decided to form the 7-member Asset Evaluation Committee of the Gazprom Board of Directors. German Gref, Member of the Gazprom Board of Directors, RF Economic Development & Trade Minister was re-elected as the Committee Chairman.

On July 12, the Board of Directors heard a report on the Gazprom Group’s Consolidated Property Register filing status and entrusted the Management Committee with continuing the work to develop that information system. The Board of Directors endorsed the amount of the auditor’s remuneration for auditing the Gazprom Accounting Statements for 2006.

On July 12, the Board of Directors approved strategic development targets of Gazprom over a 10-year period.

On July 13, Gazprom and E.ON AG inked a framework deal to swap upstream, downstream and power generation assets. Gazprom and E.ON agreed to swap a 25 per cent minus 1 share participation interest in the Yuzhno-Russkoye gas condensate field for a package of equity in E.ON, which includes shareholdings in the Hungarian E.ON Földgaz Storage and E.ON Földgaz Trade gas companies (a 50 per cent stake minus 1 share each), as well as for a 25 per cent stake plus 1 share in the regional E.ON Hungaria electricity and gas company. Moreover, Gazprom will receive an extra recompense.

On July 24, a working meeting between Alexander Ananenkov, Deputy Chairman of the Gazprom Management Committee and Valery Yazev, Chairman of the State Duma Energy, Transportation and Communications Committee took place. The meeting discussed issues related to the Russian Energy Strategy up to 2020 implementation. In particular they touched upon projected development of the gas industry in Eastern Russia within the frames of the Program for Establishing the United Gas Production, Transmission and Supply System with possible gas export to the markets of China and other APR countries.

On July 29, OOO VNIIGAZ (a wholly owned subsidiary of OAO Gazprom) inked with Petroleos de Venezuela S.A. (PdVSA) a Contract stipulating VNIIGAZ to devise a General Scheme for the gas industry development in the Bolivarian Republic of Venezuela. The General Scheme will help build a mid- and long-term development strategy for the Venezuelan gas industry.

In July, Gazprom began drilling exploration well number seven in the Barents Sea located at the Shtokman gas condensate field.

In early August, Gazprom was declared the winner of an auction for the license to explore and develop the Yamal-Nenets Autonomous District (YaNAD) located Parusovy prospect.

On August 4, Gazprom and Algerian state-owned oil & gas corporation Sonatrach inked a Memorandum of Understanding within the framework of a meeting between Viktor Khristenko, Industry & Energy Minister of the Russian Federation and Chakib Khelil, Energy & Mining Minister of Algeria. The Memorandum opens way for deeper cooperation between the companies, identifying, among other things, the following major directions of further joint businesses in the oil & gas sector: geological exploration, production, transmission, gas transmission and distribution network development, asset swaps, natural gas and oil processing & marketing in Algeria, Russia and third countries.

On August 7, a meeting focused on issues surrounding the completion of a high pressure gas pipeline and its extension to the town of Mirny, settlement of Plesetsk and Plesetsk Cosmodrome was held. The meeting adopted a decision to complete the construction of gas pipelines and gasification facilities needed for the supply of gas to the town of Mirny, settlement of Plesetsk and Plesetsk Cosmodrome in November of this year.

On August 10, led by Alexander Ananenkov, Deputy Chairman of the Management Committee, Gazprom delegation undertook a business trip to the city of Tomsk. In the course of the trip Alexander Ananenkov held a meeting with Viktor Kress, Governor of the Tomsk Oblast. The meeting examined issues in relation to the Regional Energy Development Strategy up to 2020 and a draft Development Program for an integrated gas production, transmission and supply system in Eastern Siberia and the Far East, taking into account potential gas exports to the markets of China and other countries of Asia Pacific. The meeting approved the proposal to establish in the town of Kolpashevo a demonstration zone of high efficiency gas use. A Protocol signed at the end of the meeting contemplates devising a General Development Scheme for heat and power capacities in the Tomsk Oblast and outlines a re-construction and modernization program for energy facilities based on energy saving technologies.

On August 17, Gazprom was declared the winner of an auction for the license to explore and develop the Krasnoyarsk Krai located Tetersky prospect.

On August 29, Alexander Medvedev, Deputy Chairman of the Gazprom Management Committee, and Burckhard Bergmann, Chairman of E.ON Ruhrgas AG signed an Agreement on prolongation of the existing contracts for gas supply via Waidhaus within 15 years (from 2020 to 2035) as well as an Agreement for additional gas supply via the North-European Gas Pipeline (presently named as Nord Stream).

On August 30, the Phase IV repair and reconstruction of the helium plant of OOO Orenburggazprom (100% subsidiary of Gazprom) was finished symbolizing the end of revamp process.

In August Gazprom supplied its first LNG cargo to Japan. The transaction was effectuated via Gazprom Marketing & Trading Ltd., which is part of the Gazprom Group of companies.

On September 4, within the framework of working visit of Vladimir Putin, President of the Russian Federation to Greece, Alexey Miller, Chairman of the Gazprom Management Committee had a meeting with Dimitrios Copelouzos, Managing Director of Russian-Greek joint company Prometheus Gas. The parties discussed issues of Russian-Greek cooperation in the gas sector, addressed the prospects of increasing Russian gas supplies to Greece and developing new transmission routes for gas deliveries to Southwestern Europe. Alexey Miller and Dimitrios Copelouzos also gave consideration to the Bourgas -Alexandroupolis oil pipeline construction prospects.

On September 5, in the frames of the meeting between Alexey Miller, Chairman of Gazprom Management Committee and Saparmurat Niyazov, President of the Republic of Turkmenistan the parties agreed on delivery terms of additional Turkmen gas volumes in 2006 and specified the price and supply quantities in 2007-2009. The price of $100 for 1000 of cubic meters is fixed for the period. Additional gas volumes in 2006 will be 12 bcm. In 2007-2009 gas supplies will amount to 50 bcm per year. The parties agreed on principle of adjustment of gas delivery terms in the next triennial period.

On September 6, the Gazprom Headquarters hosted a working meeting of Alexey Miller, Chairman of Gazprom Management Committee, and Lee Soo Ho, CEO of the Korea Gas Corporation Kogas. The session pondered on pipeline exports from Russia, as well as deliveries of liquefied and compressed natural gas. The parties agreed on launching spot LNG deliveries to Korea taking into consideration Gazprom experience in this sphere.

On September 7, the Gazprom Headquarters hosted a working meeting between Alexey Miller, Chairman of the Gazprom Management Committee, and Yury Boiko, Fuel and Energy Minister of Ukraine. The parties looked into issues on maintenance of Ukraine’s gas balance in the fourth quarter of 2006 and the first quarter of 2007. Alexey Miller and Yury Boiko achieved an accord on Ukraine’s problem of gas balance deficit in the fourth quarter of 2006.

On September 7, the Management Committee took into account the information on preliminary results of Gazprom activities in the first half of 2006. The Committee approved a restated Gazprom draft budget program (financial plan) and the investment program for 2006.

On September 12, Alexey Miller, Chairman of the Gazprom Management Committee met with Nobuo Katsumata, President and CEO of Marubeni Corporation. The parties discussed issues reflecting the world practice of LNG deliveries as well as cooperation in the oil and gas sector. The meeting paid special attention to opportunities for partnership in LNG production and marketing, additionally in the framework of the Baltic LNG project.

On September 12 Alexander Medvedev, Deputy Chairman of the Gazprom Management Committee met with Manuel Jose Paredes, Vice Minister of Industry and Trade of the Republic of Panama. The parties discussed opportunities for Gazprom participation in pipeline construction connecting Panama with the Central American countries as well as operating infrastructure construction. The session’s participants envisaged cooperation potential in the oil refining sector.

On September 12, the Gazprom Headquarters hosted a working meeting between Alexey Miller, Chairman of the Gazprom Management Committee and Paolo Scaroni, Chief Executive Officer of ENI Company. The parties discussed basic principles and terms on Cooperation Agreement for the whole chain from production to sales of oil, gas and electrical power as well as LNG.

On September 12, the Gazprom Management Committee endorsed the fourth Integrated Program for reconstruction and technical re-equipment of gas transportation facilities and UGS compressor stations for 2007-2010. The Committee decided that this Complex program will provide the baseline for preparation of the annual and medium-term investment programs of Gazprom related to gas transportation facilities reconstruction and technical re-equipment of gas transportation facilities.

On September 12, the Gazprom Management Committee endorsed the Integrated Program for reconstruction and technical re-equipment of gas production facilities until 2010. The Committee decided that this Complex program will provide the baseline for preparation of the annual and medium-term investment programs of Gazprom related to gas production facilities reconstruction as well as design and exploration activities.

On September 12, the Management Committee taken into consideration the information on technical and economic assessment of investment blocks in the Ustyurt Region of the Republic of Uzbekistan and approved staged Program of geological exploration for 2006-2011 in the region.

On September 12, in Nizhny Novgorod the Lokomotiv Stadium hosted Gazprom first child & sixth annual Championships. More than 2500 thousand sportsmen from 27 Gazprom subsidiaries participated in the event. The competitions of the Championship were held volleyball, soccer, basketball, swimming, track and field, weight lifting, ping-pong. The competitions were held at the best sports grounds in Nizhny Novgorod.

On September 13, Gazprom and BP concluded a bargain to supply LNG to the Atlantic basin countries. The Agreement was signed by Gazprom Marketing & Trading Ltd and BP. According to the Agreement BP will supply LNG to Gazprom Marketing & Trading Ltd in 2006 and at the start of 2007. Gazprom Marketing & Trading Ltd will sell LNG at the markets of the Atlantic basin countries. Gazprom Marketing & Trading Ltd will determine points of cargo delivery due to market requirements.

On September 14, a working meeting between Alexey Miller, Chairman of the Gazprom Management Committee and Ezzat Saad, Ambassador Extraordinary and Plenipotentiary of the Arab Republic of Egypt to the Russian Federation took place. The parties discussed perspectives for the bi-lateral cooperation in the oil and gas sphere. In particular, they pondered on possible cooperation in the projects for production, transportation, processing, and marketing of hydrocarbons at the territory of Egypt, including LNG production and deliveries.

On September 14, the Gazprom Headquarters hosted a working meeting between Alexey Miller, Chairman of the Gazprom Management Committee and Eizo Kobayashi, President and Chief Executive Officer of Itochu Corporation. The parties discussed issues on bilateral cooperation in the gas sector. In particular, the meeting discussed an opportunity for cooperation in the LNG production and transportation sectors and in the framework of construction project implementation for the North European Gas Pipeline (now called the North Stream) and Shtokman field development.

On September 14, Alexey Miller, Chairman of the Management Committee and Ivan Malakhov, Governor of the Sakhalin Oblast signed an Agreement of cooperation at the Gazprom Headquarters.

On September 19, the Gazprom Headquarters hosted a working meeting between Alexander Medvedev, Deputy Chairman of the Gazprom Management Committee and Tran Ngoc Canh, President & Chief Executive Officer of Petrovietnam, Vietnam Oil and Gas Corporation. The parties discussed matters of interaction in the gas sector within the Petroleum Contract for block 112 offshore the Socialist Republic of Vietnam as well as the progress with the preparation of a bilateral Agreement for Cooperation.

On September 19, the Gazprom Headquarters hosted a working meeting between Alexey Miller, Chairman of the Gazprom Management Committee and Anatoly Chubais, Chairman of the Management Board of UES of Russia. The parties addressed the main issues of current interaction and gas supply to power generation companies in 2007. Particular attention was paid to preparations for the upcoming autumn/winter heating season. According to Alexey Miller, Gazprom is still committed to providing the power generation sector with the full amount of gas, as set out in the gas balance scheme for the UGSS of Russia.

On September 19, Alexey Miller, Chairman of the Gazprom Management Committee and Vladimir Torlopov, Governor of the Republic of Komi signed an Accord on gasification.

On September 20, Gazprom took part in the 4th Baikal Economic Forum held under the slogan “Europe – Russia – Asia Pacific: Ways of Integration and Cooperation”.

On September 20, Gazprom and ITERA Oil & Gas Company inked a Memorandum of cooperation regarding gas from the Bratsk gas and condensate field in the Irkutsk Oblast. The Memorandum contemplates jointly implementing a range of measures within the General Scheme of gas supply to and gasification of the Irkutsk Oblast.

On September 21, Gazprom and the Altai Republic Administration inked an Agreement of cooperation and Gasification Accord.

On September 21, Alexey Miller, Chairman of the Gazprom Management Committee met with Alexander Mikhailov, Governor of the Kursk Oblast. The parties discussed issues surrounding the construction of the Sudzha – Korenevo – Glushkovo gas branch pipeline and an automated gas distribution station in the Glushkovsky district of the Kursk Oblast.

On September 25, in the course of the working visit of Gazprom delegation to the Republic of Equatorial Guinea Sonagas, Gazprom and Suntera signed a Memorandum of understanding.

On September 25, Bangkok hosted the first meeting of the Joint Coordinating Committee between Gazprom and PTT Public Company Limited (PTT), Thailand’s oil and gas company. The parties addressed the major opportunities for cooperation in Russia, Thailand and third countries. The parties agreed to jointly study potential projects covering natural gas, oil, LNG and petrochemical products supplied to the markets of Thailand and Asia Pacific as well as issues surrounding oil storage and oil & gas processing.

On September 27, a working meeting between Alexey Miller, Chairman of the Gazprom Management Committee and Michael Klein, Chief Executive Officer of Citigroup, Global Banking was held. The parties discussed the progress in the cooperation covering the Gazprom business diversification. Particularly, a focus was placed on Citigroup’s participation in devising a strategy for the Gazprom oil business development. The parties reviewed opportunities for cooperation including the acquisition of new assets and implementation of new investment projects by Gazprom.

On September 27, in course of the meeting Alexey Miller, Chairman of the Gazprom Management Committee and Yury Boiko, Fuel and Energy Minister of Ukraine, signed the 4thQ 2006 supply contracts for RosUkrEnergo’s Central Asian natural gas, covering the economic conditions of gas purchases by Gazprom. The price of gas sold by RosUkrEnergo to Ukrainian consumers accounted for US$ 95 per 1,000 cu m. The parties also identified the resource base for annual 55 bcm gas deliveries to Ukraine between 2007 and 2009, which was fully in line with the import gas requirements of the Ukrainian economy.

On September 27, the Board of Directors approved the asset consolidation scheme and agreed on deals contemplating Gazprom acquisition of additionally issued shares in Gasmash as well Gasmash’s acquisition of stakes in the Kanevsky Gas Equipment Plant and Armavir Gas Equipment Plant.

On September 27, the Board of Directors approved Gazprom participation on a par with KazMunayGas in a Russia-Kazakhstan joint venture based on the processing capacities of the Orenburg Gas Processing Plant.

On September 27, the Board of Directors endorsed the Gazprom oil business strategy. The strategy contemplates increasing annual oil recovery to 80 mln t by 2020 and will help solidify the domestic and foreign standing of Gazprom as an efficient multiprofile oil and gas business, bring Gazprom oil reserves into development on a more aggressive basis and create additional conditions for higher market capitalization and better bottom lines of the Company.

On September 27, the Board of Directors heard a report on the Gazprom preliminary operating highlights over the 1st half of 2006 and approved the restated Gazprom budget (financial plan) and investment program for 2006.



On September 29, Gazprom and Gaz de France inked an Agreement of cooperation within stuff training and development programs. According to the Agreement, Gazprom and Gaz de France will contribute to organizing and implementing apprenticeship and internship programs in Russia and France. Apprenticeship programs will be focused on international project management; industrial risks and safety; liquefied natural gas (LNG) production, transportation and regasification; gas industry company economics and management; natural gas production, transmission and storage.

On September 29, within the working visit of Gazprom delegation to Vienna Gazprom, OMV AG, OMV Gas GmbH, EconGas GmbH, GWH GmbH and Centrex Europe Energy & Gas AG entered into the long-term contracts for natural gas supply to Austria. In pursuance of the contracts signed, Gazprom will annually supply Austria with some 7 bcm of gas till 2027.

In late September represented by ZGG GmbH OAO Gazprom closed the deal to purchase 19.4 per cent of OAO NOVATEK’s outstanding ordinary shares from OOO LEVIT and SWGI GROWTH FUND (CYPRUS) LIMITED (the major shareholders of NOVATEK).

On October 3, Alexey Miller, Chairman of the Gazprom Management Committee and Makhambet Batyrbayev, Vice President of JSC NC KazMunayGas entered into an Agreement on the terms of gas transmission and supply to Kazakhstan, on a mutual deliveries basis inclusive.

On October 5, Gazprom and Gasunie inked a Memorandum of Understanding for cooperation in Joint Involvement in the NEGP and BBL Projects as well as Utilization of Gasunie’s Transmission Capacity. In pursuance of the MOU, Gazprom will become shareholder of BBL Company, with Gasunie’s stake to account for not less than 51 per cent. Furthermore, Gasunie will receive a 9 per cent stake in North European Gas Pipeline Company (now called the North Stream).

On October 5, Alexey Miller, Chairman of the Gazprom Management Committee and Antonio Brufau Niubу, Chairman and Chief Executive Officer of Repsol YPF inked a Memorandum of Understanding for Cooperation within Oil and Gas Projects. Pursuant to the MOU, the parties will study potential joint businesses in Europe, Latin America and Africa as well as within LNG projects using resources from the Russian Federation, including within the Baltic LNG project.

On October 5, a working meeting between Alexey Miller, Chairman of the Gazprom Management Committee and Fulvio Conti, Chief Executive Officer & General Manager of Enel was held. The parties addressed matters in relation to further bilateral cooperation deepening in the oil & gas sector, placing a focus on Russian natural gas supply and transmission to Italy, including along existing routes and with the use of projected new capacities.

On October 6, Beijing hosted a working meeting between Alexander Medvedev, Deputy Chairman of the Gazprom Management Committee and Zhou Jiping, Vice President of China National Petroleum Corporation. The parties continued discussing issues in relation to the implementation of the Protocol on Natural Gas Supply from Russia to the PRC. The parties progressed in agreeing on the terms and arrangements of gas deliveries from Russia to China via the Western and Eastern routes. The Chinese side confirmed the priority of gas shipments from Russia via Gazprom authorized company.

On October 9, the Gazprom Management Committee decided that pipeline gas deliveries from the Shtokman field to the European market would take priority over LNG shipments.

On October 9, a working meeting between Alexey Miller, Chairman of the Gazprom Management Committee and Josef Ackermann, Chairman of the Management Board of Deutsche Bank AG took place. The parties addressed the prospects for bilateral cooperation, placing a focus on matters such as consulting Gazprom when making acquisitions in Russia and abroad as well as financing these acquisitions. The parties also reviewed the progress with the implementation of the Gazprom power generation strategy as well as studied the possibility of repaying in advance the loans taken by Gazprom with the participation of Deutsche Bank.

On October 10, in Dresden, within the 6th International Public Forum “St. Petersburg Dialogue”, the St. Petersburg State Mining Institute and Freiberg Mining Academy signed in the presence of Russian President Vladimir Putin and German Chancellor Angela Merkel a Memorandum to set up a permanent Russia-Germany Resource Utilization Forum. On behalf of OAO Gazprom the Memorandum was signed by Sergey Fursenko, Director General of OOO Lentransgaz and on behalf of Verbundnetz Gas AG – by Chief Executive Officer Klaus-Ewald Holst.

On October 10, in Dresden, Gazprom and German Football Club Schalke 04 signed an Agreement for title sponsorship of the team. The Agreement signed for five years stipulates placing from January 1, 2007 the Gazprom logo on Schalke football players’ T-shirts and sponsor banners around the stadium perimeter as well as offers other commercial opportunities.

In mid October Gazprom supplied its first liquefied natural gas (LNG) cargo to the Republic of Korea. The transaction was effectuated via Gazprom Marketing & Trading Ltd., which is part of the Gazprom Group of companies.

On October 12, the Management Committee approved the Gazprom Statement on Housing Policy.

On October 12, the Gazprom Management Committee at its regular meeting awarded 2006 corporate bonuses in the science and technology sector.

On October 13, in the course of its working visit to Japan the Gazprom delegation held meetings with representatives of Japan’s business community. In particular, the delegation conducted talks with Harufumi Mochizuki, Director-General of Japan’s Agency for Natural Resources and Energy, top managers of Tokyo Gas, Tokyo Electric, Mitsubishi Corporation, Chiyoda Corporation, Chubu Electric as well as Japan Bank for International Cooperation (JBIC). The parties discussed all issues of mutual interest, placing a focus on deeper bilateral cooperation within LNG swap deals, potential interaction in third countries and prospects for cooperation within prominent infrastructure projects of Gazprom.

On October 13, a working meeting between Alexey Miller, Chairman of the Gazprom Management Committee and Rachid Mohamed Rachid, Minister of Foreign Trade and Industry of Egypt took place. The parties discussed the prospects for cooperation in the gas sector, addressing in particular Gazprom potential involvement in developing Egypt’s oil & gas infrastructure as well as opportunities for cooperation between Gazprom and EGAS (Egyptian Natural Gas Holding Company).

On October 17, in the frames of a working visit of Gazprom delegation to Seoul Gazprom and KOGAS entered into an Intergovernmental Agreement on gas supply to Korea.

On October 18, a working meeting between Alexey Miller, Chairman of the Gazprom Management Committee and Sheikh Hamad Bin Jassem Bin Jabr Al-Thani, First Deputy Prime Minister and Minister of Foreign Affairs of the State of Qatar was held. The parties addressed the prospects for bilateral cooperation in the gas sector, outlined promising joint businesses and agreed to continue business contacts.

On October 20, the Pestsovaya area of the Urengoyskoye field was brought to its full capacity of 27.5 bcm of gas per annum. The work was completed according to schedule.

On October 23, the town of Nadym hosted an onsite meeting dedicated to the construction of crucial supporting facilities at the Bovanenkovo oil and gas condensate field and development of a gas transmission system. The meeting decided that while the Bovanenkovo field pre-development customer and operator would be Nadymgazprom, the gas transmission system construction customer and operator would be Yamalgazinvest and Severgazprom, respectively.

On October 26, the Gazprom Management Committee reviewed preliminary results in 2006, Gazprom Investment Program forecast, Budget (financial plan) and Cost Optimization (reduction) Programs over 2008-2009. The Management Committee approved the Investment, Budget and Cost Optimization Draft Programs for 2007.

On October 26, the Gazprom Management Committee reviewed the readiness of the Unified Gas Supply System (UGSS) for the 2006-2007 autumn/winter season. The meeting noted that the UGSS was generally prepared for the upcoming autumn/winter season.

On October 27, the Board of Directors approved the deal to sell a Gazprom owned 24.9 per cent stake in Gazprombank to National Pension Fund Gazfond. The Board of Directors approved the deal to sell a Gazfond owned 19.87 per cent stake in Mosenergo to Gazprom.

On October 27, the Board of Directors approved Gazprom acquisition of additional shares in ArmRosgazprom. As a result, the share of Gazprom in ArmRosgazprom will grow from 45 to 58 per cent.

On October 28, Bashkiria hosted the inauguration of the upgraded Moskovo compressor station - 18A.

In October the Gazprom Magazine won the BCP Award-2006 golden prize presented by European Corporate Publishing Verband (ECPV) which is the Europe’s largest corporate press association.

On November 2, Gazprom placed the A7 and A8 corporate bonds worth RUR 5 bln each, with the face value of RUR 1,000 and maturity of 3 and 5 years, respectively.

On November 9, the Gazprom Management Committee envisaged the Gazprom employment insurance development conception.

On November 13, within the working visit of Gazprom delegation to Eastern Siberia and the Far East Gazprom and Irkutsk Oil Company (INK) signed the Memorandum of cooperation on issues of the Markovskoye oil & gas condensate field and Ayanskoye gas field in the Irkutsk Oblast. Within the framework of the General Scheme of gas supply and gasification of the Irkutsk Oblast the Memorandum proposes implementing joint plan of actions. Due to the document, INK and its affiliated and dependent companies will sell natural gas from the Markovskoye and Ayanskoye fields to Gazprom enterprises.

On November 14, an Agreement on strategic partnership was signed between Gazprom and ENI. Under the accord reached, Gazprom receives the opportunity to launch from 2007 direct Russian gas deliveries to the Italian market. The supply amount will be gradually growing to some 3 bcm/y by 2010. The Agreement contemplates extending existing contracts for gas supply to Italy till 2035.