The Board of Directors approved the acquisition by Gazprom of a 92.25 per cent stake in Kamchatgazprom from Rosneftegaz. According to the terms of the deal agreed upon with Rosneftegaz the shares of Kamchatgazprom will be purchased for RUB 2.85 billion. Gazprom will be offered the opportunity of making interest-free installment payments over 23 years. The shares will be paid for in equal yearly portions. The present value of payments according to the specified schedule does not exceed the price of Kamchatgazprom shares approved by the Board of Directors on March 2, 2010, namely RUB 1.64 billion.

The work aimed at the acquisition of Kamchatgazprom shares is done in pursuance of the Russian Government's Directive of May 19, 2009.

The acquisition of Kamchatgazprom shares allows Gazprom to take control over all the elements of the Kamchatka Territory gas supply chain: gas production (at present, Gazprom acts as a pre-development operator at the Kshukskoye and Nizhne-Kvakchikskoye fields, the licenses for which are owned by Kamchatgazprom), transmission and distribution. This will enable the Company to secure long-term uninterrupted gas supplies to the consumers in the region as well as to increase the level of its gasification.

Tags: Gazprom