OREANDA-NEWS. September 19, 2012. 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 meeting highlighted that the Eastern Gas Program was a top priority for Gazprom. Alexey Miller informed Yegor Borisov that the Company would soon make a decision to considerably boost the Program pace.

The parties discussed the progress with the Agreement of Cooperation. In particular, they addressed the creation of the Yakutia gas production center in Eastern Russia. It was noted that the Company had completed the Investment Rationale for the Chayandinskoye field pre-development, gas transmission and processing. After review by experts, this document is being prepared for consideration.


Special attention was given to creating a favorable environment for the gas sector development in the region. Gazprom and the Government of the Republic will continue joint efforts on preparing proposals regarding the relevant state support measures.

The meeting also addressed Gazprom's participation in the socioeconomic development of the Republic. At present, a children's versatile sports complex is being constructed in Yakutsk as part of the Gazprom for Children program.


The parties agreed to arrange a joint meeting of Gazprom and the Government of the Sakha Republic (Yakutia) in November 2012. The meeting will address acceleration of the Eastern Gas Program pace.

Responding to a question after the meeting, Alexey Miller stated: “The three meetings held today with heads of Siberian and Far Eastern regions is a part of the work aimed at preparing decisions to boost the Eastern Gas Program pace. We are going to act quickly and resolutely”.
Background

The Agreement of Cooperation between Gazprom and the Republic of Sakha (Yakutia) was signed in July 2007 and the Gasification Accord – in June 2008. In December 2010 the parties entered into the Partnership Agreement for socioeconomic development driven by the Eastern Gas Program.

Pursuant to the Eastern Gas Program approved by the 2007 Order of the Russian Federation Industry and Energy Ministry, new gas production centers will be established in Eastern Russia.

The Chayandinskoye oil, gas and condensate field with the subsurface license held by Gazprom is the cornerstone for the Yakutia gas production center. The field is located in the Lensk District, Republic of Sakha (Yakutia). The field's C1+C2 reserves make up 1.3 trillion cubic meters of gas and 79.1 million tons of recoverable oil and condensate reserves. Currently, geological exploration is underway at the field.