K.S.BasnievRussia, Moscow

M2M Oil and Gas Subcommittee

OVERVIEW OF RUSSIAN OVERVIEW OF RUSSIAN GAS AND OIL SECTORGAS AND OIL SECTOR

20 May,200820 May,2008RomeRome

ksb@gubkin.ruK_basniev@mail.rutel +7 499 135 79 56

Gas and Oil reservesGas and Oil reserves

Siberian FD

Northwest FD

Volga FD Ural FD

Southern FD

Far East FD

Offshore

2929,854.1,854.1

11,,21217.07.0

11,,3386.986.9

Total

993.3.222121.3.313.513.5

4,114.54,114.5228.58.54747..44

22,594.8,594.839392.42.4

4.54.5

881100..66558.78.7

1134.334.3

221,937.1,937.2268689.79.7

11,146.,146.00295.0295.02626.3.3338.58.5

88.8.80.10.12.72.7

Gas, bcmGas, bcmCondensate, Condensate, mlnmln

ttOil, Oil, mlnmln

tt

630

590

560557556555552.5547.6

521.9

2002 2003 2004 2005 2006 2007 2010 2020 2030

Gas productionGas productionby

2030

–

no less than 610-630 bcm

by 2020 –

no less than

580-590 bcm

by

2010 –

no less than

560 bcm

New gas production provinces in RussiaNew gas production provinces in Russia’’s offshores offshore

Fersman

Rise

Sev. Kildinskoye

MurmanskoyeDolginskoye

Arkhangelsk

Kanin

Peninsula

Murmansk

Narian-Mar

Teriberka

Kildin

island

Rybachiy

Peninsula

Amderma

Ludlovskoye

Varandey

Sea

Sev. Kamennomysskoye

Kamennomysskoye

Sea

Bely Island

PrirazlomnoyeObskoye

Antipayutinskaya

Gydan

Peninsula

Nova

yaZe

mlya

Shtokman

Kruzenshternskoye

Kharasaveyskoye

Rusanovskoye

LeningradskoyeLedovoye

Medyn

Sea

Ob and Ob and TazTaz

BaysBays

Yamal

offshore

Northeast Barents Sea Northeast Barents Sea offshoreoffshore

PechoraPechora

Sea offshoreSea offshore

Kolgue

v Islan

d

Kola Peninsula

Caspian Caspian SeaSea

SakhalinSakhalin

Yar-Sale

Salekhard

Promising structuresOil and gas fields

Vaigach Island

YamalYamal

--

a new development stage for gas a new development stage for gas production and transportationproduction and transportation

Rusanovskoye

Leningradskoye

Malyginskoye

Tambeyskaya

group

Bovanenkovskoye

Kruzenshternskoye

The aggregate reserves in the Bovanenkovskoye, Kharasaveyskoye

and Novoportovskoye

fields

–5.8 tcm

of gas, 100.2 mln

t of condensate, and 227 mln

t of oil

The Bovanenkovskoye

field

–

commissioning in

2011 of the first start-up complexes with a capacity of no less than 15 bcm per year and a gas trunkline

between Bovanenkovo

and Ukhta

Rostovtsevskoye

Novoportovskoye

Kharasaveyskoye

Yamal’s

explored gas reserves

–

10.4 tcm

Eastern RussiaEastern Russia

China

Mongolia

Kazakhstan

JapanKorea

Russia

Krasnoyarsk centre

Yakutskcentre

Sakhalincentre

Irkutskcentre

Novosibirsk

YakutskUdachny

Mirny

Chita

KhabarovskBlagoveshchensk

Shanghai

Yuzhno-Sakhalinsk

OmskProskokovo

Barnaul

Gorno-Altaisk

Pyongyang

Beijing

Ulan -Bator

Seoul

Tyumen Tynda

NovokuznetskAngarskAbakan

Krasnoyarsk

Tokyo

Boguchany

TaishetZabaikalsk

Vladivostok

Sovgavan

Komsomolsk-on-Amur

Kemerovo

Chelyabinsk

Bogandinskaya

CS to the USA

Ulan-UdeIrkutsk

DPRK

Nakhodka

Skovorodino

Kansk

Tomsk

27% of Russia’s initial in-place resources

–

more than

67 tcm

Oil business development Oil business development Annual oil output

by 2020

-

80 mln

t

oil,

mln

t

condensate, mln

t

2005 2006

11.59.5

34

11.4

Developing the petrochemical sector, GTL technology

Expanding the resource base

Bringing onstream

explored oil fields on a by-stage basis

Oil and condensate reserves

–

2.6 bln

t

GazpromGazprom’’s gas transmission systems gas transmission systemThe length of gas trunklines

–156.9 thousand km

Current status

including spur lines

–44.5 thousand km

Compressor stations

–

217Gas pumping units

–

3,629with a total installed capacity of 41,000 MW

In 2006 717.8 bcm of gas

was fed

into

Gazprom’s gas transmission system,

including 115 bcm injected by independent producers

New gas pipeline routesNew gas pipeline routes

RUSSIANFEDERATION

FINLAND

LATVIALITHUANIA

BELARUS

UKRAINE

ESTONIA

SWEDEN

NORWAY

DENMARK

GERMANY CZECH REPUBLIC

POLAND

SLOVAKIA

ROMANIA

BULGARIAYUGOSLAVIA

ТУРЦИЯ

ВЕНГРИЯ

SWITZERLAND

AUSTRIA

CROATIA

BOSNIA

GEORGIA TURKMENISTAN

UZBEKISTAN

KAZAKHSTAN

FRANCE

ТУНИС

SPAIN

IRELAND

MOSCOW

АЛЖИР

MOROCCO

PORTUGAL

MOLDOVA

GREAT BRITAIN

Nord StreamNord Stream

GryazovetsGryazovets

––

VyborgVyborg

South StreamSouth Stream

NTONTO

––

TorzhokTorzhok UrengoyUrengoy

transit centre expansiontransit centre expansion

SokhranovkaSokhranovka

CSCS––OktyabrskayaOktyabrskaya

CS gas pipelineCS gas pipeline

KasimovskoyeKasimovskoye

UGSUGS

site site ––

IzobilnoyeIzobilnoye

CS gas pipelineCS gas pipeline

Possible gas transmission routePossible gas transmission routefrom the from the ShtokmanShtokman

fieldfield

ITALY

CHINA

MONGOLIA

KAZAKHSTAN

JAPANKOREA

RUSSIA

Krasnoyarskcentre

Yakutskcentre

Sakhalin centre

Irkutskcentre

Novosibirsk

YakutskUdachny

Mirny

Chita

KhabarovskBlagoveshchensk

Shanghai

Yuzhno--Sakhalinsk

OmskProskokovo

Barnaul

Gorno-Altaisk

Pyongyang

Beijing

Ulan -Bator

Seoul

Tyumen Tynda

NovokuznetskAngarskAbakan

Krasnoyarsk

Tokyo

Boguchany

TaishetZabaikalsk

Vladivostok

Sovgavan

Komsomolsk-on-Amur

Kemerovo

Chelyabinsk

Bogandinskaya

CS to the USA

Ulan-UdeIrkutsk

DPRK

Gas production Gas production centrescentresPipeline gasPipeline gasLNGLNG

Nakhodka

Skovorodino

Kansk

Tomsk

Shaping a gas pipeline system in Shaping a gas pipeline system in eastern Russiaeastern Russia

Operations on the inOperations on the in--country country marketmarket

Receipts from gas sales, RUR bln

2005 2006 2005 2006

356.0+14.8%

310.0

316.3+3.0%

307.0

Gas sales volume, bcm

Gas export to the CIS and Baltic Gas export to the CIS and Baltic countriescountries

Gas sales volume

–

101.0 bcm

(up 31.9%),Receipts from sales –

RUR 209.7 bln

(up 93.5%)

Expanding presence on the CIS and Baltic markets

–

acquiring stakes in gas transmission and marketing companies

Switching to market relations with the CIS and Baltic countries

–

establishing joint ventures

Russian gas in Russian gas in europeaneuropean

marketmarket

2005 2006 2005 2006

845.9+36.6%

619.1

161.5+3.5%

156.1

Gas sales volume, bcm Receipts from sales, RUR bln

LongLong--term contracts and strategic term contracts and strategic agreements of Russiaagreements of Russia

Agreements signed

Contracts extended with

E.ON Ruhrgas

–

four contracts extended through 2035 for a total supply volume of up to 20 bcm per yearOMV

–

extensions agreed on till 2027

and new contracts signed for the supply of 6.9 bcm/yr to Austria Eni

–

extensions till

2035 for the supply of gas to Italy

Gaz

de France

–

extensions till

2031

for the supply of gas to France

on the Main Terms & Conditions of >20 bcm/yr Gas Deliveriesthrough the Nord Stream Gas Pipeline with E.ON Ruhrgas, DONG Energy, Gazprom Marketing & Trading and Gas de France

with BASF and E.ON to swap assets

on the Strategic Partnership with Eni

RWE Transgas

(Czech Republic)

–

till

2036. Deliveries will grow to 9 bcm starting 2010

Underground gas storages in EuropeUnderground gas storages in Europeto potentially create a Poederlee

(Belgium) underground storage site, Gazprom’s share –

75%

to increase Gazprom’s share to 75% in the Humbly Grove UGS facility

Agreements concluded

Gazprom has obtained the right to tap into the Hinrichshagen

structure (Germany) for UGS site construction purposes

Gazprom takes UGS capacities on lease (between 2006 and 2007-

400 mln

m³

of working gas volume in Germany and Austria)

Great Britain

Humbly GroveRehden

Shonkirchen

HinrichshagenJemgum

Poederlee

Bernburg

Haidach

Belgium

Germany

Austria

SakhalinSakhalin--22

Yuzhno-Sakhalinsk

Prigorodnoye

Dolinsk

Gastello

Smirnykh

Kril’on

Katangli

Val

Okha

Nyrovo

PogibiLazarev

De-Kasti

Nikolayevsk-on-Amur

Sakh

alin

Islan

d

Wakkanai

Sakhalin-2

(Piltun-Astokhskoye)

Sakhalin-2

(Lunskoye)

Gas pipeline

Oil pipeline

LNG plant

Hydrocarbon fields

The project is aimed at LNG supply to Asia-Pacific

The project contemplates developing the Piltun-Astokhskoye

oil (reserves –

around 600 mln

t) and Lunskoye

gas (reserves –

700 bcm) fields

VIETNAM

Dong HA

Hai

Nan

Mong

Cai

HalongHalong

Hanoi

CHINA

Block 112Block 112

GazpromGazprom’’ss

exploration and exploration and production abroadproduction abroad

Venezuela

Aral Sea

UZBEKISTANKungrad

Nukus

Urgench

Buchar

a

Chardzhou

Nurata

Navoi

Chimkent

Tashkent

Samarkand

TermezKelif

Karshi

Mubarek

Almalyk

Charvak

Vietnam

India

ORISSA

Bhubaneshvar

JHARKHAND

Ranchi WESTERN BENGALIA

BANGLADESH

BlockBlock--2626

(NEC(NEC--OSNOSN--9797/1/1))

HaldiaHaldiaCalcuttaCalcutta

ParadipParadip

VishakhapatnamVishakhapatnam

BAY OF BENGAL

Uzbekistan

Gulf of Coro

VENEZUELA

COLUMBIA

GULF OF VENEZUELA

Bay of La Vela

Curacao Curacao Island Island

((HollandHolland))

Aruba IslandAruba Island

((NetherlandsNetherlands))

Coro

PARAGUANAPENINSULAPunto

Fijo

GUAJIRA PENINSULA

El Tablazo

Maracaibo

CARRIBEAN SEA

URUMACOURUMACO--II

URUMACOURUMACO--IIIIII

URUMACOURUMACO--IIIIII

MORUY MORUY --

IIIIII

CARDONCARDON--IIIIII

Electric power trading and Electric power trading and СОСО22

emission emission quotas sales by Russiaquotas sales by Russia

Gazprom Marketing & Trading joined the Code of Rules governing purchases, sales and transportation of electric power in the Great Britain

May

2006

First electric power trading deal

October 2006

Gazprom Marketing & Trading sealed its first deal to trade in СО2

emission quotas in Europe

November 2006

New products and technologiesNew products and technologies

Synthetic liquid fuel (SLF) production

Intensive development of low pressure gas reserves, associated gas, gas fields located at long distances from gas transportation infrastructure

Coalbed

methane extraction

Expansion of the hydrocarbon resource base and target markets

Gasification of the Kemerovo Oblast and southern Siberia

Gas sales by Gas sales by GazpromGazprom to Europe in to Europe in 2006, 2006, bcm

34,4

0,10,40,40,71,12,12,72,73,24,74,95,56,67

7,47,78,78,8

0,4

22,119,9

10

OthersMacedonia

Bosnia and HerzegovinaSwitzerland

SloveniaCroatiaSerbia

GreeceBulgariaBelgum

NetherlandsFinland

RomaniaAustria

SlovakiaCzech Republic

PolandGreat Britain

HungaryFranceTurkey

ItalyGerman

Gas sales for the CIS and Baltic States Gas sales for the CIS and Baltic States in 2006, in 2006, bcm

0,4

1,4

1,9

2,5

1,1

4

6,5

20,5

0,7

59

Estonia

Latvia

Armenia

Gergia

Moldova

Lithuania

Azerbaijan

Kazakhstan

Belarus

Ukraine

OPERATING DATAOPERATING DATA20052005 20062006

IIncrementncrement ofof gasgas reservesreserves, , bcm 583,4583,4 590,9590,9GAS PRODUCTION , GAS PRODUCTION , bcm 555,0555,0 556,0556,0Condensate production, Condensate production, mln t 11,511,5 11,411,4Oil production, Oil production, mln t 9,59,5 34,034,0Gas sales in Russia, Gas sales in Russia, bcm 307,0307,0 316,3316,3Gas sales on European market, Gas sales on European market, bcm 156,1156,1 161,5161,5Gas export to the CIS and Baltic countriesGas export to the CIS and Baltic countries, , bcm 76,676,6 101,0101,0

Gas processingGas processing 33,933,9 33,533,5

Products of processing, thousand tonsProducts of processing, thousand tonsPPetroleumetroleum 2 242,72 242,7 2 158,82 158,8Fuel oilFuel oil 1 640,81 640,8 1 442,91 442,9Liquefied gasLiquefied gas 1 881,91 881,9 1 837,71 837,7SSulphurulphur 5 361,85 361,8 5 396,35 396,3

Thank you!Thank you!