16 Nametkina St., Moscow 117997, Russian Federation
Mailing address: 16 Nametkina St., 117997, Moscow, V-420, GSP-7
Tel.: +7 (495) 719 30 01 (for references)
Fax: +7 (495) 719 83 33; 719 83 35

http:// www.gazprom.ru, www.gazprom.com

Chairman: Alexei Borisovich Miller (see his speech to the Gazprom 2006 AGM here)

Board of directors: Dmitry Anatolievich Medvedev, Alexander Georgievich Ananenkov, Bruckhard Bergmann, Farit Rafikovich Gazizullin, German Oskarovich Gref, Elena Evgenievna Karpel, Mikhail Leonidovich Sereda, Boris Grigorievich Fedorov, Viktor Borisovich Khristenko, Igor Khanukovich Yusufov 

Ownership structure: Gazprom has over 460,000 shareholders. The major shareholder of the Company is the state having 51% of the shares. 36,81% is owned by Russian legal entities; 11,50 % by non-resident entities. The Russian Government confirmed in August 2006 that it would use Rosnefetgaz to 'conolidate' its stake in Gazprom.

Revenue & Results: Gazprom's y-o-y net profit under International Financial Reporting Standards (IFRS) doubled to RUR460.27bn ($17.47bn) in the first nine months of 2006. Group sales revenue rose 70% to RUR1,581.3bn ($59.98bn), sales profit grew 80% to RUR568.416bn ($21.58bn), and profit before tax increased 90% to RUR622.559bn ($23.64bn). Net debt under IFRS shrank 4 percent from RUR797.465bn ($30.28bn) as of December 31, 2005 to RUR767.221bn ($29.13bn) as of September 31, 2006.

2006 sales forecasts were raised by 19 percent due to increased prices to former Soviet republics. Earnings may reach 2.25 trillion rubles ($84 billion) this year, 363.7 billion rubles more than expected in February. Correspondingly, Gazprom will spend 358.9 billion rubles more than planned for 2006.

Gazprom's net profit under RAS doubled from RUR88.446bn (approx. USD3.3bn) to RUR177.063bn (approx. USD6.6bn) in H1 2006. Net profit dropped by 43.63% to almost RUR63.832bn (approx. USD2.38bn) in Q2 2006 compared to Q1. The decline may be attributed to the seasonal decrease in gas sales both on the foreign and domestic market.

Fully Audited Results to 12/31/05 available here. Profit before tax was RUR450 million, and sales were up 42%. Gazprom expects its exports revenues to rise by at least 42 percent to $37 billion in 2006. 

The firm's 2005 export revenues were $26 billion. GazpromNeft net income under US GAAP totaled $2.804 billion in 2005, 37.1% higher than in 2004 - $2.047 billion. Net profit for the reporting period of 2004 for the parent company OAO Gazprom consisted of 200,686 million RUR, compared to 170,877 million RUR for the period of 2003.

Percentage of market shares: Gazprom is the largest gas producing company in the world. Its share of world gas production is about 20%. It controls almost 60% of Russian gas reserves and produces about 90% of Russian gas. The company is responsible for 8% of Russia’s GDP. Gazprom provides about 20% of earnings to the federal budget and supplies gas from which approximatelyy 50% of Russia' gas is generated. On 5th July 2006 The Lower House of the Russian parliament passed a bill making Gazprom Russia's sole exporter of natural gas.

Gas Supply Geography: 

News:

June 23rd '07: Gazprom and Urals Energy PCL, registered in Cyprus, announced they would cooperate on gas field and pipeline projects in Irkutsk Oblast, including development of Dulisminskoye oil and gas-condensate field. Urals Energy is developing Dulisminskoye's oil reservoirs, and will develop gas-condensate in 2008-09 and sell the field's gas to Gazprom, which will own the regional gas infrastructure. A memorandum signed this week foresees opportunities to set up gas processing and electricity generating facilities. Gazprom and Irkutsk oblast authorities signed a gas pact in December 2005 that called for comprehensive regional gas development and transmission.Dulisma Oil Co., a subsidiary of Urals Energy, holds the license on Dulisminskoye field 100 miles north of Ust-Kut. Gazprom and ITERA agreed in September 2006 to develop Brastk gas-condensate field just east of Bratsk, and Gazprom and Irkutsk Oil Co. agreed in November 2006 to develop Markovskoye oil and gas-condensate field, 40 miles east of Ust-Kut, and Ayanskoye gas field, between Markovskoye and Dulisminskoye fields.

MOSCOW, June 20. Alexander Ananenkov, temporarily acting for Alexei Miller, and Dave Lezar, President and Chief Executive Director of Halliburton, discussed possible interaction in developing & applying novel technologies intended for operating oil and gas deposits, for geological prospecting and well drilling. They have announced th eestablishment of a joint experts group.

Moscow June 2. Presidential Aide Arkady Dvorkovich confirmed that the state plans to change Gazproms management structure to make it more transparent and answerable to shareholders. "There are plans for reforming the management structure of Gazprom,” Prime-Tass quotes him as saying.

- On March 1st '07 the Gazprom Board of Directors approved the deals for Gazprom to join Sakhalin Energy Investment Company Ltd. as the leading shareholder. On December 21, 2006, Gazprom, Royal Dutch Shell plc, Mitsui & Co., Ltd. (Mitsui) and Mitsubishi Corporation signed the Protocol on Gazprom's joining Sakhalin Energy Investment Company Ltd. (Sakhalin-2 project operator) whereby Gazprom would purchase 50 per cent plus one share in Sakhalin Energy for $ 7.45 bln. Each of the existing Sakhalin Energy shareholders decreased its stake by 50 per cent.

Gazprom sought control over the largest gas fields in East Siberia and the Far East. All basic gas supply programme projects for East Siberia and the Far East, including Sakhalin-3 and the development of the Chayandinskoye field, will be given federal status with Gazprom under instruction to coordinate the implementation of the Eastern programme.

Moody's upgraded the senior unsecured issuer and debt ratings of Gazprom from Baa1 to A3, with a stable outlook, due to improved credit profile (Dec '06)

Marketing, Trading, International 

In October 2006 Gazprom announced sponsorship of German football Club Schalke '04 in a deal worth $125 million over 5 years. Following Alexei Miller's announcement that Gazprom would develop the Shtokman field without any foreign partners, and that the gas extracted would be piped to Europe, effectively confirming Germany as the central hub in Gazprom's European Gas distribution network. Gazprom also recently bought a former state-owned coal mine which will become Europe's biggest underground gas storage facility.

Gazprom Marketing and Trading USA, a division of UK-based Gazprom Marketing and Trading Ltd, was established in Augst 2006. The company is based in Houston and directed by John Hattenberger, previously senior vice president at Marathon Oil.

Gazprom issued bonds worth 15 billion rubles ($560.3 million) in July 2006. The tranches, worth 5 billion rubles ($186.8 million) each, will have maturities of three, five and seven years. In August 2005, Gazprom placed a four-year, 5 billion ruble bond at an annual coupon rate of 6.95 percent. It also has three outstanding ruble bonds, and with maturities extending from January 2007 to February 2010. The longest bond currently yields 6.94 percent.

(07/25/06) Sevmorneftegaz, Gazprom's subsidiary, has started drilling exploration well No. 7 of the Shtokman gas field in the Barents Sea. Gazflot, Gazprom's subsidiary, is the project's general contractor. The well is being drilled in 340 meters of water with the semi-submersible drilling rig Deepsea Delta leased by the Norwegian company Hydro.

Regions: Major part of fields which are under Company’s development are located in the Nadym-Pur-Taz region of the Yamal-Nenetsk Autonomous Area (Western Siberia). Medvezhye, Urengoyskoye, Yamburgskoye and Zapolyarnoye are the largest fields. It should be noted that the first three fields are in the state of declining production. Moreover, Gazprom produces about 7% of the gas in the European part of the country. In future, the Yamal peninsula is expected to become the Company’s basic gas producing region. Together with these regions, Gazprom will recover gas in Eastern Siberia and Far East, on the Barents and Kara seas’ shelves. The Severo-Samburgskoye and Severo-Parusovoye fields in Western Siberia, Zapadno-Pechorogorodskoye in the Republic of Komi, Dolginskoye in Pechora Sea as well as Kamennomysskoye and Severo-Kamennomysskoe fields in the Ob Bay are the most significant discoveries. As a result of exploration work, hydrocarbons reserves increment amounted to 2,011.2 mtoe. Over the last 10 years, Komsomolskoye, Yubileynoye, Zapadno-Tarkosalinskoye, Yamsoveiskoye, Zapolyarnoye and Severo-Vasyuganskoye fields have been commissioned. Gazprom bought 30% of Kyrgyzstan's Gas-stations for $99 million in June '06.

In July 2006 Gazprom Neft was awarded long-term rent agreements for 30 land plots in St. Petersburg, repoted by Interfax. The sites will be developed as filling-stations on the city's main auto-routes. At the auction organized by the St. Petersburg property fund, Gazprom Neft offered $11.926 million for the land, just meeting the starting price.

Major projects: Sakhalin II - Gazprom's Chief Executive Alexie Annenikov conducted the first sitting of the coordination committee concerning Gazprom's entry into the Sakhalin projects in early February 2007. In discussing existing reserves 9 fields were found to contain 1.2tril m3 of reserves; or a tentative 6bn tons of tentative fuel. Gazprom signed a protocol on the acquisition of 50%+1 stock in Sakhalin Energy in December '06 in a deal worth some  $7.45bn. The share of each foreign holders will be halved.

“The Blue Stream gas pipeline”  Russia – Turkey gas pipeline. Thousands of specialists from Russia, Italy, and Turkey took part in its construction. The Blue stream is intended for deliveries of the Russian natural gas to Turkey going under the Black Sea, avoiding third countries’ issues. The Blue stream pipeline is 1213 km long. The designed capacity of the gas pipeline amounts to 16 bcm of gas per year. The total cost of the Blue stream pipeline is $3.2 billion. For realization of the project Gazprom and Blue Stream Pipeline Company BV have signed a $1.13 billion loan agreement with the bank consortium consisting of Bank Kommerchiale Italiana, Mediocredito Centrale and Westdeutche Landesbank Zhirocentrale. At present, the Blue stream gas pipeline complex with annual capacity of 4 bcm was launched.

“The North European gas pipeline” (NEGP). NEGP will begin to deliver Russian natural gas to Western Europe avoiding transit states along its route. The NEGP will run under the waters of the Baltic Sea from Portovaya bay (near Vyborg) to the coast of Germany (near Greifswald). Two parallel gas pipelines of 1200 km will be built to an annual capacity of 55 bcm, with a spur to deliver gas to consumers in Sweden. The gas pipeline construction will help expand gas supplies to Scandinavian countries as well as provide reliable gas supplies to consumers in Western Europe, North-Western region of Russia and the Kaliningrad Region as gas consumption continues to grow in these areas. The first pipeline of NEGP will be put into operation in 2010. 30 percent of expenses on the NEGP sea stretch, which is expected to require investment worth EUR4-5bn, are to be borne by shareholders. Furthermore, Gazprom is authorized to contribute some of its assets as part of its share (pipes, for example). The remaining 70 percent will be raised in loans to be repaid by 2032.

"The Zapolyarnoye oil and gas condensate field" Gas and oil condensate field Zapolyarnoye is located 200 kms off Novy Urengoy in the Yamal-Nenets Autonomous region. Zapolyarnoye is the last large gas field discovered and located on land. It is planned that about 3 mln t of gas condensate and 861 th t of oil will be produced at Zapolyarnoye annually.

ALGERIA: Gazprom and Algerian state-owned oil & gas corporation Sonatrach signed a Memorandum of understanding in August 2006, following a meeting between Viktor Khristenko, Industry & Energy Minister of the Russian Federation and Chakib Khelil, Energy & Mining Minister of Algeria. In 2005 Sonatrach produced 85 bcm of natural gas and supplied 21.2 bcm to domestic consumers. The company imports pipeline natural gas to Italy, Spain, Portugal, Tunisia and Slovenia, and ships LNG to France, Spain, the USA, Turkey, Belgium, Italy, Greece and South Korea.

Subsidiaries:

100% ownership: Astrakhangazprom, Bashtransgaz, Burgaz, Ecological and Analytical Center, Ecomed-91, Gazexport, Gazflot, Gazkomplektimpex, Gaznadzor, Gazobezopasnost, Gazpromavia Aviation Company, Gazpromenergo, Gazprom Finance B.V, Gazprom Marketing and Trading Limited (GM&T),  Gazprominvestarena, Gazprominvestholding, Gazprommedstrakh, Gazpromokhrana, Gazpromrazvitie, Gazpromstroyengineering, Gazsviaz, Informgaz, Informgazinvest, Irkutskgazprom, IRTs Gazprom, Kaspiygazprom, Kavkaztransgaz, Kubangazprom, Lentransgaz, Mostransgaz, Nadymgazprom, Nadymstroygazdobycha, NIIgazeconomika, North Transgas Oy, Novourengoysky GCC, Noyabrskgazdobycha, NPTs Podzemgidromineral, Orenburggazprom, Permtransgaz, Podzemgazprom,. PRT 144, Samaratransgaz, Servicegazprom, Severgazprom, Severneftegazprom, Surgutgazprom, Surgutstroygaz, Surgutstroygaz Building Company Ltd, Szhizhenny gaz (Liquefied gas), Tattransgaz, Temryukmortrans, Topenergy, Tomsktransgaz, TyumenNIIgiprogaz, Tyumentransgaz, Uraltransgaz, Urengoigazprom, Volgogradtransgaz, Volgotransgaz, VNIIgaz, Yamalgazinvest, Yamburggazdobycha, Yugtransgaz, ZGG GmbH

Over 50% ownership:  Brest-Gazoapparat, Dialoggazservice, Ditangaz, Druzhba, Druzhkovski ZGA, Electrogaz, Fatherland, FundFora, Gazprom, Future of the Gazenergoservice, Gazcom, Gazmash, Gazprombank, Gazprom-Media, Gazpromgeofizika, Gazprom, KranGaztelekom, Gaztorgpromstroy, Gazstroydeta, lGiprogaztsentr, Giprospetsgaz, Kostromatrubinvest, Krasnodargazstroi, Lazurnaya, Lengazspetsstroy, Metaprom, Orgenergogaz, Peter-Gaz B.V, Promgas, Rivmar, Sakhalin Energy, SevKavNIPIgaz, AK Sibur, Spetsgazavtotrans, Spetsgazremstroy, Tsentrenergogaz, Tsentrgaz, TsKB Nefteapparatury, Urengoystroygaz, VNIPIgazdobycha, Volgogaz, Volgogradneftemash, Vostokgazprom, Zapsibgazprom, Zarubezhneftegaz

Up to 50% ownership: Arctic Energy, Armrosgazprom, Belgazprombank, Exchange Russian Gas, IK Vega. VIP-Premier. Vologdapromresurs, Volta, Gazavtomatika, Gaz-Agro-Friport, Gas-oil, Gazpromenergo, Gaztransit, Gaz-Truby, Gazum, HorizonEuRoPolGaz, KazRosGaz, SR-DRAGA, Blue Stream Pipeline Company B.V., Hotel TyumenIveko, UralazInterfinInterconnector (UK) Limited, InkombankLatvias, GazeMedia-Most, Moldovagaz, Moskovskii Vekselnyi,  BankMospromagrotorgdom, Noyabrsky Gorodskoy Bank, Orenburgskaya Finance Company, Commercial Bank Olimpiiskii, Promstroybank of Russia, Prometey-Sochi, Rosshelf, Sibneftegas, Slovrusgaz, Insurance Company Sogaz, Union of energy exporters, Stella Vitae, Motors technology, AKB Tobolsk, Tomskgaz, Trade House Rus-gaz, Turusgaz, Khimsorbent, Horoshevskaya energy company, Chestem, Eesti Gaas, Yugorosgaz, YuzhNIIgiprogaz Instit

History: The Russian joint-stock company Gazprom was established in February 1993 in compliance with the Decree of the President of the Russian Federation dated November 5 1992, and the Resolution of the Council of Ministers, the government of the Russian Federation, dated February 17, 1993. The Company’s Annual Shareholders’ Meeting held on June 26, 1998, approved the Board of Directors’ proposal to bring the name of the company in conformity with the Federal law “On joint-stock companies”. The new name of the company is Open joint-stock company Gazprom. Since 1996, Gazprom's shares have been traded at trade floors of the Federal stock exchange.

In spring 1997, according to the decree of the President of the Russian Federation dated April 28, 1997, Gazprom's structural reorganization began to create an investor-friendly environment, to facilitate self-financing of the gas industry, and to effect more flexible state control over gas supply in order to enhance gas supply security. As a result of structural reorganizations, the number of new major Gazprom's companies such as Mezhregiongaz and Burgaz emerged.

In December 1997, an intergovernmental agreement on Russian gas supply to Turkey through a gas pipeline to be laid on the Black sea’s bed was concluded. This was the first step in implementing Blue Stream, the major international project.

From September-December 1999, the first section of the Yamal-Europe gas pipeline, from the Nesvizhskaya compressor station in Belarus to the Russia-Poland border, the gas pipeline section in Poland and compressor stations Kondratky and Vlotslavsk were commissioned. In Germany, a pipeline section from the Malnovo compressor station to the town of Roukersdorf (gas pipeline Stegal) was brought into operation. Commissioning of the new pipeline sections allowed an increase of annual Russian gas export capacity to about 14 bcm.

On February 3,  2000, the first joint on the Blue Stream gas pipeline was welded.

In December 2000, the Yubileinoye gas field became completely operational (Yamal-Nenets Autonomous District).

On October 1, 2001, Russian gas was first delivered through the Yamal-Europe gas pipeline to the Netherlands.

On October 31, 2001, the Zapolyarnoye oil and gas condensate field was brought on stream in the Yamal-Nenets Autonomous District. Zapolyarnoye is the world’s 5th largest gas fields by discovered hydrocarbon reserves. The design capacity is 100 bcm of gas per annum.

On March 31, 2002, construction of the first line of the Blue Stream gas pipeline was completed.

On June 5, 2002, Gazprom completed construction on the second line of the deep water section of the Blue Stream gas pipeline laid on the Black Sea bed.

On July 26, 2002, the Severo-Vasyuganskoye gas condensate field in Tomsk Region was brought on line. The field contains 29 bcm of gas and 6.3 million tons of gas condensate, respectively.

In early September 2002, Gazprom’s 100% subsidiary Gazflot Limited drilled test borehole at the Severo-Kamennomysskoye gas field in the Ob Bay. While testing the well, daily gas inflow of 374,000 m3 was obtained.

On October 20, 2002, the last joint of the pipeline connecting marine section of the Blue stream gas pipeline with its onshore section in Turkey, 60 kilometers of the town of Samsun, was welded.

In late December 2002, the second facility of complex gas treatment unit was put into operation at the Zapolyarnoye gas and oil condensate field.

On December 30, 2002 the starting complex of gas pipeline “Russia – Turkey” (Blue Stream) was commissioned.

Related articles:
No reasons for demonizing Gazprom, RIA Novosti, 11th August 2006
Why Russians Love Gazprom, Business Week ONline, 24th July 2006.
Novatek and Gazprom agree deal, Gazprom offers $1.3 billion to $1.9 billion for Gazprom Neft, 24th July 2006
IEA Denies It Seeks Gazprom Destruction, MSN Money (AP), 11th July 2006.
Energy agency voices doubts on Gazprom deliveries, IHT, 11th July 2006
Gazprom Announces Internationall Accounting Standards Results, The Moscow Times, 10th July 2006. 
Gazprom may get 9% stake in Dutch-U.K. natural-gas pipeline, BBJ, 5th July 2006
Gazprom in Talks on Lists of Belarus Assets, Associated Press, June 23rd 2006.
Gazprom & UES Agree share of Energy Sources, RIA Novosti, 26th June 2006.
Gazprom-Neft barred at Moscow Oil refinery Shareholder's Meeting, RIA Novosti, 23rd June 2006
Gazprom's Grip on Western Europe Tightens with Hungarian deal, International Herald Tribune, 23rd June 2006.
Gazprom-Neft shareholders elect a new board of directors, Ria Novosti (23rd June 2006)
Should We Fear Gazprom? Channel 4 News (UK) Report 22nd June 2006 (video)
Caracas Invites Gazprom to build Venezuela-Argentina Pipeline, Itar-Tass Agency, June 21st 2006.
Statement by Alexei Miller, Chief Executive of Gazprom, at the XXIII World Gas Conference, Amsterdam, June 6, 2006
Gazprom - A Reliable Partner for Europe’s Energy Supply? by Andreas Heinrich, KICES, Koszalin, and
Gazprom’s Role in Regional Politics by Julia Kusznir, Forschungsstelle Osteuropa, Bremen both from Russian Analytical Digest (Vol. 1, No. 1, 6 June 2006)
Roman Kupchinsky, Does Gazprom have a Master Pipeline Plan, Radio Free Europe/Radio Liberty (January 30, 2006)