OREANDA-NEWS. October 27, 2010. The Gazprom headquarters hosted today a working meeting between Alexey Miller, Chairman of the Company’s Management Committee and Yegor Borisov, President of the Republic of Sakha (Yakutia).

The parties discussed the prospects for interaction under the Cooperation Agreement placing an emphasis on Gazprom’s involvement in socioeconomic development of Yakutia.

It was noted that Gazprom and the Yakutian Government would sign the Agreement defining the paramount areas of the said activities.

Pursuant to the document, the parties will be involved in the social infrastructure expansion for a number of Republic’s municipalities especially for those located within the Chayanda field development area. Facilitation of Yakutian citizens employment will be another crucial area of cooperation.
Background

The Cooperation Agreement between Gazprom and the Republic of Sakha (Yakutia) was entered into in July 2007, the Accord on Gasification – in June 2008.

Natural gas penetration in the Republic of Sakha (Yakutia) averages 23.3 per cent including 27.8 per cent in cities and towns and 14.1 per cent in the rural area. Gazprom doesn’t supply natural gas to the Republic.

The state-run Development Program for an integrated gas production, transportation and supply system in Eastern Siberia and the Far East, taking into account potential gas exports to China and other Asia-Pacific countries (Eastern Gas Program) was approved by the September 2007 Order of the Russian Federation Industry and Energy Ministry. Gazprom was appointed by the Russian Government as the Program execution coordinator.

New gas production centers will be established in Eastern Russia: the Krasnoyarsk, Irkutsk, Yakutia, Kamchatka and Sakhalin centers.

The Chayanda oil, gas and condensate field with the subsurface license held by Gazprom, is the cornerstone for the Yakutia gas production center.

The Chayanda field is located in the Lensk District, Republic of Sakha (Yakutia). The field’s C1+C2 reserves make up 1.24 trillion cubic meters of gas and 68.4 million tons of oil and condensate (recoverable).

It is projected to bring the Chayanda field oil rim into development in 2014 and the gas deposits – in 2016.

In the first half of 2011 Gazprom is going to finalize the Investment Rationale covering the Chayanda field pre-development, as well as natural gas transmission and processing. The document will, among other things, define the layout of the gas processing plant and the gas chemical facility with due regard for the considered issues in the sphere of helium production, transportation, storage and marketing. Gazprom will also take steps on geological survey with a view to create an underground helium storage site on the basis of the Chayanda field.