13 April 2011

Shtokman Development AG Board of Directors made principal decisions for further implementation of the Shtokman Project Phase 1

On April 13 a regular Shtokman Development AG Board meeting was held in Zurich (Switzerland). Having reviewed the proposed gas transportation options the Shareholders approved two phase flow as the Project technical concept. The two phase flow concept implies delivery of gas and gas condensate onshore from the field followed by separation. The Board of directors also confirmed the implementation milestones of the Project: first pipeline gas supply in 2016 and start up of LNG Plant in 2017.

The Shareholders regard development of the Shtokman gas condensate field as a single integrated project to group together gas production, transport and LNG production. Based on technical, economical and organizational advisability the Shareholders confirmed the original concept of integrated investment decision for pipeline gas and LNG production fixed in the Frame Agreement. The SDAG Board of directors has launched a process of preparing the integrated FID that will be taken by the end of 2011.

“The Shtokman Project is a priority for all Shareholders. Today we confirmed our principal interest in its early implementation. Our joint efforts are to achieve the investment decision this year”, stated A.B. Miller, President of Shtokman Development AG Board, Chairman of Gazprom Management Committee.