GAZPROM EP INTERNATIONAL

Сompany profile

August 2010
 International upstream projects of OAO Gazprom

Gazprom strategic objective is the transformation

into a global energy company bearing a presence in
key regions of oil and gas production
Unified Gas Supply
System
GREAT BRITAIN*
• Wingate and Emerald
• Saltfleetby
NORTH AFRICA VIETNAM
Libya - operator of blocks №19 and №64 (exploration) - Agreement with PetroVietnam on offshore
- 49% share in «Wintershall A.G.» which is the area development
operator of oil concessions С96-97 (production)
Algeria - operator of El Assel block (exploration)

LATIN AND SOUTH AMERICA
- Venezuela – Urumaco1-2*, Ayacucho-3,
Blanquilla-Tortuga, Mariscal Sucre, JV with PDVSA
- Bolivia - gas projects
- Brazil– cooperation with Petrobras
CENTRAL AND WEST AFRICAA
- Nigeria – JV with Nigerian National Petroleum
Corporation
- Namibia – integrated Kudu gas project
INDIA*
- Exploration works on block 26 in the Bay of Bengal
- MOU with Indian National Gas Corporation:
6 blocks at the western coast and 7 blocks at the
Eastern coast

* Projects are implemented by other

companies of Gazprom Group

2

May 2007 January 2008
Decision of OAO Gazprom Assets consolidation in
BD to establish Gazprom Libya C96-97
Netherlands B.V.
Supervisory Board
Andrey Kruglov
Deputy Chairman of OAO Gazprom
Management Committee
Alexander Medvedev
Deputy Chairman of OAO Gazprom
Management Committee
Gazprom EP International history
April 2008 May 2008 November 2008 July 2009
Consolidation of Gazprom Setting up Gazprom Oil and Setting up Gazprom Brazil Renaming of the company
Libya B.V. and Gazprom Latin Gas Nigeria Ltd. Ltd. Gazprom EP International B.V.
America B.V. (previously known as Gazprom
Stakeholder’s decision to designate Netherlands B.V.)
company’s managing directors
Managing Director
Andrey Akimov Boris Ivanov
Chairman of OAO Gazprombank Managing Director
Management Committee Gazprom EP International B.V.
Vsevolod Cherepanov Karel Bernard van Polanen
Member of OAO Gazprom Managing Director
Management Committee Gazprom EP International B.V.
3
 Mission, principles and tasks

Mission
The mission of Gazprom EP International is dedicated to assisting OAO Gazprom with its transformation into a global
energy company, bearing presence in world key regions of oil and gas production.

Principles
 Transparency and dependence on OAO Gazprom;

 Project-oriented business model;

 Diversification of resource base and sale markets;

 Integration of production chain.

Targets
 Increase OAO Gazprom’s share value;

 Enhance resource base and sale markets abroad;

 Introduce cutting-edge technology;

 Seek and attract partners for risk allocation.

4
 AFRICA. Overview of assets and prospects
AFRICA

ALGERIA LIBYA
El Assel perimeter Block №19
 Awarded in a bid round in  Awarded in a bid round in
December 2008 December 2006
 Operator  Operator Gazprom Libya B.V.
Gazprom EP International B.V. Block №64
 Awarded in December 2007
 Operator Gazprom Libya B.V.
NIGERIA
Concessions C96-97
Cooperation
 Upon swap of assets with BASF
 JV between Gazprom Oil and OAO Gazprom acquired a 49% stake
Gas Nigeria and NNPC in Wintershall A.G. which is the
operator of concessions
New projects
 Pipeline construction  Production stage assets
 Participation in exploration and  Additional prospective structures
production of hydrocarbons (exploration)
 Associated petroleum gas gathering and
processing Development prospects
 Signed MOU with NOC
 Acquisition of new exploration
stage assets and assets with proven
reserves
NAMIBIA
New projects
 Integrated Kudu gas project

5
 ALGERIA. El Assel Project

Project description
Awarded in a bid round in December 2008
Phase : Exploration (follow-up)
Operator : Gazprom EP International B.V.
Contract share : 49%
Contract type : concession
Partner : Sonatrach (51%)

Current status Short-term plans

 Operating company Gazprom Algeria established  3D seismic survey
 Historical seismic data obtained and reinterpreted  Drilling of Rhourde Sayah-2 wildcat well
 Work programs and budget approved (exploration)  Preparation for ZERP-1 well drilling
 Seismic survey and drilling bid rounds conducted
 3D seismic survey commenced
 March 15, 2010 – drilling of the first wildcat well Rhourde Sayah-2 started

6
 LIBYA. Block №19

Project description
Block №19
License block was awarded in a bid round in December 2006 (3rd round PSA IV).
Tripoli PSA ratified in April 2007.
Участок №19
Phase: Exploration
License area: 10 300 km2 (offshore)
Contract type : PSA (EPSA-IV)
Exploration program (2007-2011, in case of successful exploration works):
• 3D seismic survey – 5000 km2
• wildcat drilling

Petroleum potential
Petroleum potential associated with Cretaceous and Triassic complexes
Possible accumulations of hydrocarbons in other intervals

Current status
 3D seismic survey completed
 Interpretation of available seismic, well data and other geological information completed
 Several targets identified and prepared for wildcat drilling
 First well drilling program under development
 Spud in- second half 2010

7
 LIBYA. Block №64

Участок №19 Project description

Tripoli
License block was awarded in a bid round in December 2007 (fourth round PSA IV).
PSA was ratified in June 2008.
Участок №19
Block No.64
Phase : Exploration
License area: 4 000 km2 (onshore, Ghadames basin)
Contract type : PSA (EPSA-IV)
Exploration program (2008 – 2012, in case of successful exploration works ):
• 3D/3D SPARSE seismic survey – 5 150 km2
Участок №64 • wildcat drilling

Petroleum potential
Petroleum potential is associated with Silurian deposits
Possible accumulations of hydrocarbons in other intervals

Current status
 3D seismic survey completed
 3D seismic data processed
 Interpretation of available seismic, well data and other geological information completed
 Several targets identified and recommended for wildcat drilling
 First well drilling program under development
 Spud in – III quarter 2010

8
 LIBYA. Concessions C96 и C97

GAZPROM LIBYEN
VERWALTUNGS GMBH.

Триполи Project description 49% 51%

Участок №19 Swap of assets between OAO Gazprom and BASF

C96 100%

C97

Phase: declining production (9 fields)

Remaining recoverable reserves : 7,5 bcm of gas and 167 mbbls of oil (in
company stake WI)
Production levels : 57- 65 mcm of gas and 2,0-2,3 mbbls/d (monthly
average levels from two concessions in the first half 2010)

Long-term development plan

• exploration works
• field infrastructure development
• gas hub establishment for neighboring blocks
• elaboration of measures for production rate optimization (flooding
pattern)

Stake acquired through the swap of assets with BASF

Swap of assets deal completed in December 2007
OAO Gazprom stake in Wintershall A.G. (operator of concessions C96-
97) - 49%
Wintershall A.G. Governing board was formed (3 representatives from
OAO Gazprom)
Currently, trilateral negotiations are underway to convert existing
concessions to EPSA-IV type contracts.

9
 WEST AFRICA. NIGERIA

Business development
 June 2008
Opening of Gazprom Oil and Gas Nigeria branch office in Abuja.

 September 2008
Signing of MOU with Nigerian National Petroleum Corporation in
Moscow.

 June 2009
Visit of the President of the Russian Federation Dmitry Medvedev to
Nigeria. Signing of constituent documents for the JV between Gazprom
Oil and Gas Nigeria and NNPC. The new joint company was named Nigaz
Energy Company Limited.

 October 2009
Geodata Technical Services Ltd - JV between Gazprom Oil and Gas
Nigeria and Nigerian company Geokinetic - was established. The
company provides services for seismic data processing and storage.

Areas for cooperation OAO Gazprom -NNPC

 Design and construction of associated gas gathering system
 Development of oil and gas fields
Other affiliate companies of OAO
 Construction of pipeline net
Gazprom are planned to be
 Construction of power generating facilities
attracted as subcontractors
 LNG, LPG production
 LNG – piped gas swap deals
10
 SOUTH WEST AFRICA. NAMIBIA

Business development
 June 2009
Visit of the President of the Russian Federation to Namibia. The MOU was
signed between OAO Gazprombank and Namibian National Oil Corporation for
the organization of funding to construct a gas turbine plant. The Kudu gas
field is intended to serve as a raw material base for this plant.

 October 2009
Granting to Gazprom EP International a conventional non-binding license for
2 years to undertake a feasibility study for Kudu* project.
Within 2 years license holders have the right to examine the data and conduct
a scoping study. An investment decision and a license agreement shall be Integrated Kudu gas project
made and signed before October 2011.
JV Gazprom-Namcor stake – 54%
Other partners to project: Tullow Oil (Great Britain) – 31%, Itochu (Japan) – Namibia
15%

Power
 January – April 2010 Station
Negotiations between partners to Kudu project. Negotiations with South Africa
on purchase of power from Namibia. Subsea gas
pipeline

* Integrated Kudu gas project encompasses production of natural gas from Kudu field (offshore
Namibia), gas transportation to power station and power supply to Namibia and South Africa.

Kudu field South

License № 002 Africa
11
 MIDDLE EAST.
EAST. Overview of prospects

QATAR IRAN
Business development
 Participation in prospective Business development
 July 2008
exploration and gas production
projects with LNG potential Signing of MOU between OAO
Gazprom and Iranian National
Petroleum Corporation for the joint
development of oil and gas fields
IRAQ
Mid-term prospective  March 2009
 Participation in major gas field Signing of MOU between Ministry of
development projects Energy of Russia and Ministry of Oil
of Iran

Prospective projects
 Joint development of South Pars
YEMEN field
 Participation in other prospective
Business development
projects offshore and onshore Iran
 Participation in
prospective exploration
projects with LNG potential

12
 LATIN AMERICA.
AMERICA. Overview of assets and prospects

BRAZIL
Entering new market
VENEZUELA
 November 2008

Ayacucho-3 Setting up Gazprom Brazil

Exploration and Production Ltd.
 Agreement on evaluation and
certification of heavy oil reserves New projects
 Evaluation of prospective projects
Gas Production Projects: Blanquilla- in cooperation with State Petroleum
Tortuga, Mariscal Sucre Company Petrobras and other
 MOU with Venezuelan National Brazilian companies
Petroleum Corporation PDVSA
 Natural gas production
offshore Venezuela and LNG
BOLIVIA
Service sector
 2009 – establishment of joint Agreement on Examination of
service company with PDVSA – Blocks
Servicios Venrus  April 2008
Signing of agreements on
examination of the Sunchal and
Azero blocks

Prospective projects
 Ownership in Petroandina
 Joint projects with Total on the
Ipati and Aquio blocks

13
 VENEZUELA. Exploration and production

Ayacucho-3
 In July 2008, an agreement between Gazprom Latin America and PDVSA was signed on
evaluation and certification of heavy oil reserves on Ayacucho-3 block.
 On November 26, 2008, Gazprom Latin America and PDVSA signed an agreement on joint
examination of reserves to develop a feasibility study.
 Negotiations are underway to establish a joint venture for the development of field (in-place
reserves exceed 5 bln t) within the Consortium of the Russian Petroleum Companies.
 Possible synergy by implementing a unified development scheme for blocks Ayacucho-3 and
Ayacucho-2 (TNK-BP).

Blanquilla - Tortuga

On September 19, 2008, Gazprom Latin America and PDVSA signed a Memorandum of
Understanding for natural gas production on offshore block Blanquilla-Tortuga with further
production of LNG. Technical and economic feasibility study underway.

Mariscal Sucre
Аякучо 3
Gazprom Latin America bid for a tender for gas and LNG production offshore Venezuela. Tender
award decision anticipated.

14
 VENEZUELA. Service sector

Installation and workover of compressor units

Services

In 2009, PDSA Servicios and Gazprom Latin America signed

a Memorandum on founding a joint venture in oil and gas
services. The joint company was further named Servicios
Venrus.
Oil pits cleaning
The joint company provides services for PDVSA production
facilities on a non-competitive basis in the following areas:
 Installation and workover of compressor units
 Oil pits cleaning
 Drilling and wells workover
 Power generation
Currently, JV Servicios Venrus runs Jusepin-120 and Santa
Drilling and well workover Power generation Rosa 18 projects.

15
 BOLIVIA. Business development

Agreement on examination of blocks

 OnMarch 17 and April 23, 2008, Gazprom Latin America and Bolivian State Petroleum
Company YPFB signed an agreement on examination of petroleum potential of the Sunchal and
Azero blocks located in the hydrocarbon-rich Tarija region.
 The results
of the geological study of these blocks were presented at the Central Committee
of OAO Gazprom which approved the establishment of a JV between Gazprom Latin America
and YPFB to conduct exploration works and further develop the blocks. Negotiations are
ª underway.
A Z01-TX 5072-21
50 1 4-
18 88 -2

Tatarenda 26

Projects with Total

X ª
21

AZ02-T
5

2
AZ-91- ª
Tatarenda X-03
Tacobo
Tacobo
ª '
Tatarenda
ª'
M
Alexinio Bittancourt X-1 ªTatarenda Muchiri X-1
Tatarenda X-27 Tatarenda 27ª ª
Tatarenda X-01
C H -9

ª
Carahuatarenda X-1

On September 18, 2008, OAO Gazprom –Total – YPFB signed a Memorandum of Understanding
L P -9 7-

ª
Azero LP-95-16
6- 0 1

4
CH -96-0 ª
45

AZ03-TX
ª
Guariri 1
for the joint operations on the Azero block. Total, in its turn, offers a stake in the Ipati and Aquio
B0 9 1-1 0

B091-14 Guariri 2

blocks where a gas discovery is made. Negotiations are underway.

LP -96 -4 1

ª
Pincal X-1 Guariri X-2
ª Itapi Norte

Curuyuqui X-1001Los Huesos X-1 Saipuru X-3

ª[ª ª ª
AZ-91-4 AZ04-TX Lagunillas X-1 Charagua
Azero Í Don Bosco X-1ª
ª
Possible ownership in Petroandina
B0 9 2-2 4

B091-12
LP -9 7-4 7

Don Bosco X-2

Aquio

Aquio X-1
B091-18
Carohuaicho
Charagua 1
Ipati and
AZ05-TX ª Incahuasi X-1 ª
Aquio
LP -9 7-4 9

Incahuasi X-1ST
B 09 2 -2 3

ͪ B090-04
La Montanaª X-1
Irenda X-1
On September 18, 2008, OAO Gazprom-PDVSA-YPFB signed a Memorandum of Understanding
AZ 0 8 -TX

[ B091-19
Inau X-1
ª
on possible purchase of Petroandina shares by OAO Gazprom.
Inau X-2 Guapoy 1
ª Ipati Sur ª Jucumari X-1A
Ipati Sur
*' Camiri 050 B090-03
B R9 8 -02

ªª
Monteagudo
ª 1ªª
Monteagudo 'ª'' '
Camiri
Sauce1Mayu '
Camiri
Camiri 107P B091-17
ª
Itapirenda X-02''Itapirenda X-01
Itapirenda 07
Inau
ª
General gas industry development scheme
B090-02
Tucan X-4
Barrial X-2Tucan X-3
ªª
ªª Barrial X-1 Guaruy
Pirarenda X-2
B091-16
L P-9 6-3 1

ª 1ª'
Guaruy ' B091-15
Pirarenda X-1
ª Guairuy 23Guairuyª03
Cumandairenda X-1 Salinas X-1

Ingre
San Juan del Piray X-1DSTIngre X-1
ª Cuevo X-2 Cuevo X-1
Boyuibe X-1
ª
B091-20
In February 2009, OOO Gazprom-VNIIGAZ, Gazprom Latin America and YPFB signed a
^_
Cuevo Oeste X-2ª ªª

Memorandum on developing the general gas industry development scheme for Bolivia.
Huacareta X-1 B090-01Boyuibe X-2
ª Caipipendi Centro ª
Caipipendi Oeste B091-21 Boyuibe
Itacaray AGRG Norte
Rosario del Ingre X-1D Rosario del Ingre X-1
ª
Huacareta Tiacia

16
 Increase in Gazprom international upstream projects

5 years / 4 projects 4 years / 14 projects

Since 2006 Gazprom through Gazprom EP International has significantly intensified activities on expansion of its own
resource base abroad by participating in international bid rounds for exploration and production of hydrocarbons and
cooperating with national oil companies in various countries.
17
 GAZPROM EP INTERNATIONAL B.V.

Prins Hendriklaan 28, 1075BD, Amsterdam,

The Netherlands
Tel.: +31 2030 50 980
Fax: +31 2030 50 988
Tel.: +7 (495) 725 7727 (Moscow office)
Fax: +7 (495) 725 77 47 (Moscow office)
info@gazprom-ep-int.com