PRESS CONFERENCE JUNE 18, 2012

GAZPROM IN EASTERN RUSSIA

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Yakutsk

Tynda Skovorodino

Yakutsk center

Blagoveshchensk

Zabaikalsk Chita

Ulan-Ude

Komsomolsk- on-Amur

Khabarovsk

Ulaanbaatar

Beijing

CHINA MONGOLIA

Yuzhno- Sakhalinsk

Nakhodka

Sovgavan

Оkha

Tokyo JAPAN

Vladivostok

DEMOCRATIC PEOPLE’S REPUBLIC OF KOREA

REPUBLIC OF KOREA

Pyongyang

Seoul

Sakhalin center

Far East Section of Unified Gas Supply System General Development Scheme

Gas production centers LNG/CNG plant and export terminal Projected gas processing plants

Existing gas pipelines Gas pipelines being designed and under construction

Kamchatka Territory Gas Supply Project Commissioned in September 2010

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Gas pipeline length – 392 km

Gas pipeline diameter – 530 mm

Pressure – 6.37 MPa

Annual throughput – 750 million m3/yr

First gas supplied to consumers in 2010

Zapadno- Kamchatsky licensed block

Kshukskoye

Nizhne- Kvakchikskoye

Sobolevo

Kamchatka Peninsula

Petropavlovsk- Kamchatsky

SEA OF OKHOTSK

BERING SEA

PACIFIC OCEAN

Kavalerovskoye AGDS Apacha AGDS

Yuzhnye Koryaki AGDS Nachinki AGDS AGDS 1

AGDS 2 Razdolny AGDS

Yelizovo AGDS Severnye Koryaki AGDS

Zapadno-Kamchatsky Licensed Block

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Sredne-Kunzhinskoye field Kshukskoye field Nizhne-Kvakchikskoye field Severo-Kolpakovskoye field

Hydrocarbon resources of Zapadno-Kamchatsky licensed block

1,621.4

523.30

200400600800

1,0001,2001,4001,6001,800

Gas, billion m3 Oil, million t

Kamchatka Territory

Hydrocarbon traps Gas and condensate fields Zapadno-Kamchatsky licensed block

First Startup Complex of Sakhalin – Khabarovsk – Vladivostok Gas Transmission System Commissioned in September 2011

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Length of first startup complex within gas trunkline – 1,350 km, including: •Submerged crossing under the Nevelsky Strait – 2 strings with 1,000 mm diameter and 23 km length each •Gas lateral running to Vladivostok gas distribution station – 116 km

Gas pipeline diameter – 1,220 mm, lateral diameter – 1,020/720 mm

Pressure – 9.8 MPa, lateral pressure – 7.4 MPa

Sakhalin main compressor station – 2 gas pumping units, 32 MW

Vladivostok gas distribution station – 265,000 m3/hr

Komsomolsk- on-Amur

Khabarovsk

Yuzhno- Sakhalinsk

Vladivostok

Okha

Nikolaevsk- on-Amur

Alexandrov- Sakhalinsky

Korsakov

Vladivostok GDS

CS -6

CS -5

CS -4

CS -3 CS -2

CS -1 Nogliki

RUSSIA

SEA OF JAPAN

RUSSKY ISLAND

SEA OF OKHOTSK

GULF OF SAKHALIN Sakhalin III Vostochno- Odoptinsky block

Sakhalin I Chaivo field Sakhalin II Piltun- Astokhskoye field

Sakhalin III Ayashsky block

Sakhalin III Kirinskoye field

Sakhalin II Lunskoye field

MCS, 0 km

CS -13 CS -12

CS -11

CS -10 CS -9

CS-8

CS -7 CHINA

Fields within Sakhalin I project Fields within Sakhalin II project Main compressor station (MCS) at Sakhalin – Khabarovsk – Vladivostok gas transmission system; o km Okha – Komsomolsk-on-Amur existing gas pipeline First startup complex at Sakhalin – Khabarovsk – Vladivostok gas transmission system Komsomolsk-on-Amur existing gas pipeline

Construction of Submerged Crossing under Eastern Bosphorus Strait

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Kirinskoye Field Pre-Development Project. Kirinskoye Field OPF – Sakhalin MCS Gas Pipeline Project

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Gas pipeline parameters:

• Diameter – 1,020х19 mm

• Operating pressure – 9.8 MPa

• Length – 137 km

• Throughput – 19 billion m3/yr

Raw Hydrocarbon Reserves and Resources in Republic of Sakha

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АВС1 С2 С3

Republic of Sakha gas, billion m3 1,313.80 1,223.30 233.000

condensate, million t 33.50 20.00

oil, million t 245.50 189.00 191.0 00

GAZPROM / Chayandinskoye field gas, billion m3 631.10 694.30

condensate, million t 9.40 10.20

oil, million t 50.20 9.70

Incremental growth through geological exploration in 2011, billion m3

С1 – 178.2

Measures of State Support for Projects in Eastern Russia (I)

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Income tax • Reducing the income tax rate • Reimbursing 50% of the paid income tax in case of

reinvesting the income received from projects implementation in Siberia and the Far East

Federal target programs • Financing part of expenses on investment projects for

gasification of Russian regions through targeted allocation of funds to regional budgets for inter-settlement and intra-settlement gas pipelines construction

• Creating power supply, power generation and transport infrastructure in a prioritized manner

Social fees • Reducing employer’s social contribution rates on the

gross wage fund for the employees from other Russian regions during the first three years of employment

Severance tax • Removing social contributions from salary increments for

staff members employed in the Extreme North or similar territories

• Applying 0% severance tax rate to newly discovered hydrocarbon fields located in Yakutia and the Shelf

Property tax • Applying 0% property tax rate until completion of an

investment project being executed in Siberia and the Far East

Measures of State Support for Projects in Eastern Russia (II)

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Pricing

• Creating the pricing mechanisms that promote a wider use of natural gas by consumers due to its environmental and technological advantages

Gas processing and gas chemicals

• Providing tax benefits to gas chemical facilities

• Creating helium concentrate storage facilities and strategic helium reserves funded by the state

• Boosting creation of the national vehicle fleet designed for helium transportation

• Applying 0% import duties to the process equipment used in the oil and gas sector and having no analogs in Russia – during the project payback period