OAO Gazprom Shareholders Meeting, June 29, 2007
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OAOOAO GazpromGazprom ShareholdersShareholders Meeting,Meeting, JuneJune 29,29, 20072007 Financial highlights 2005 2006 Changes Receipts from gas and other product 272.2 sales, RUR bln 1,231.3 1,632.7 32.6 % Net profit, RUR bln 203.4 343.7 68.9 % Dividends per share, RUR 1.502.54 69.3 % 160.4 66.2 31.9 12.8 18.5 Market capitalization, USD bln 12.31.2001 12.31.2002 12.31.2003 12.31.2004 12.31.2005 12.29.2006 2 Equity capital structure 2002 2003 2004 2005 2006 The share controlled by the Russian Federation 39.262% 39.262% 39.262% 50.002% 50.002% including The Federal Agency for Federal Property Management 38.373% 38.373% 38.373% 38.373% 38.373% ОАО Rosgazifikatsiya0.889% 0.889% 0.889% 0.889% 0.889% ОАО Rosneftegaz --- 10.740% 10.740% ADR holders4.422% 4.422% 4.422% 4.422% 13.200% Other registered persons and legal entities 56.316% 56.316% 56.316% 45.576% 36.798% 3 Share Market The closing price of Gazprom’s shares at the The closing price of ADR on Gazprom’s St. Petersburg stock exchange shares at the London stock exchange* RUR USD 350.38 52.64 302.5 46.0 215 ceiling ceiling 29.48 year-end year-end 314 195 bottom bottom 28.68 194.3 11.92 69.6 15.76 84.7 14.2 76.57 10.9 44.45 7.86 10.36 10.5 35.45 40.55 38.5 4.68 4.16 24.02 21.1 3.88 15.64 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 •The ADR price reflects a new Gazprom’s shares/one ADR ratio (one ADR = four shares) 4 Reserves Total 29,854.1 1,217.0 1,386.9 4,114.5 28.5 93.2 47.4 21.3 8.8 Offshore 13.5 0.1 Northwest FD 2.7 21,937.2 Far East FD 810.6 58.7 689.7 295.0 1,146.0 2,594.8 134.3 26.3 Gas, bcm 392.4 Volga FD Ural FD 38.5 Condensate, mln t 4.5 Siberian FD Oil, mln t Southern FD 5 Reserve buildup Reserves Geological Reserves as at 12.31.05 exploration as at 12.31.06 Natural gas, bcm 29,130.7 590.9 29,854.1 Condensate, mln t 1,216.3 11.9 1,217.0 Oil, mln t 1,357.5 46.9 1,386.9 Three gas condensate and one oil fields discovered Chikanskoye – Eastern Siberia Yuzhno-Noyabrskoye – Western Siberia Akobinskoye – Orenburg Oblast Karmalinovskoye – Stavropol Krai 30 hydrocarbon reservoirs discovered 6 License Acquisitions A total of 238 licenses held by Gazprom Group as at 12.31.2006 Hydrocarbon prospecting and production licenses – 169 Geological survey licenses– 59 32 subsoil use licenses obtained, including 9 licenses in Central Asia 7 Audit Appraisal of Gazprom Current value Group’s А+В+С1 reserves Gazprom’s reserves 94% of gas 182.5 USD bln 94% of oil 26.1 90% of condensate USD bln Gazprom Neft’s reserves 8 Gas production by 2030 – no less than 610-630 bcm 630 by 2020 – no less than 580-590 bcm by 2010 – no less than 560 bcm 590 560 556 557 552.5 555 547.6 521.9 2002 2003 2004 2005 2006 2007 2010 2020 2030 9 Gazprom’s production capacities Aneryakhinskaya Yamburgskoye Pestsovoye Yen- Kharvutinskaya Yakhinskoye Tab- Yakhinskaya Urengoyskoye Yuzhno- Russkoye Between 2002 and 2006 production capacities Yety- with a total design capacity Purovskoye of over 170 bcm/yr commissioned Vyngayakhinskoye 10 New gas production provinces in Russia’s offshore Sakhalin Northeast Barents Sea offshore Ludlovskoye Yamal offshore Fersman Rise a y l Rusanovskoye Bely Island Ledovoye m Shtokman e Z Leningradskoye a y a v Gydan Peninsula o Kharasaveyskoye N Kruzenshternskoye Antipayutinskaya Sev. Kildinskoye Pechora Sea offshore Sev. Kamennomysskoye Rybachiy Peninsula V Prirazlomnoyeai Caspian ga Kildin island ch Is Dolginskoye la Obskoye Sea Murmanskoye nd Amderma Kamennomysskoye Sea Murmansk d Teriberka n la Is Medyn Sea v e K u Varandey Sea lg o o la K P e Kanin Peninsula Ob and Taz Bays n Yar-Sale in s u la Narian-Mar Salekhard Oil and gas fields Arkhangelsk Promising structures 11 Yamal - a new development stage for gas production and transportation Rusanovskoye Leningradskoye The Bovanenkovskoye field – Malyginskoye commissioning in 2011 of the first start-up Kharasaveyskoye complexes with a capacity of no less than 15 bcm Tambeyskaya group per year and a gas trunkline between Bovanenkovo Bovanenkovskoye and Ukhta Kruzenshternskoye The aggregate reserves in the Bovanenkovskoye, Kharasaveyskoye and Novoportovskoye fields – Rostovtsevskoye 5.8 tcm of gas, 100.2 mln t of condensate, and 227 mln t of oil Novoportovskoye Yamal’s explored gas reserves – 10.4 tcm 12 Eastern Russia Udachny Yakutsk Sakhalin Russia Mirny centre Yakutsk centre Krasnoyarsk centre Komsomolsk- on-Amur Tyumen Tomsk Tynda Yuzhno- Sakhalinsk Boguchany Sovgavan Bogandinskaya CS Irkutsk Skovorodino to the USA Krasnoyarsk centre Khabarovsk Chelyabinsk Proskokovo Omsk Taishet Blagoveshchensk Novosibirsk Kansk Chita Kemerovo Abakan Zabaikalsk Barnaul Angarsk Irkutsk Novokuznetsk Ulan-Ude Gorno-Altaisk Nakhodka Vladivostok Kazakhstan Ulan -Bator Tokyo DPRK Mongolia Pyongyang Japan Korea Seoul Beijing China 27% of Russia’s initial in-place resources – Shanghai more than 67 tcm 13 Oil business development Annual oil output by 2020 - 80 mln t 34 oil, mln t Oil and condensate reserves – 2.6 bln t condensate, mln t Bringing onstream explored oil fields on a by-stage basis 11.5 11.4 9.5 Expanding the resource base Developing the petrochemical sector, GTL technology 2005 2006 14 Gazprom’s gas transmission system Current status The length of gas trunklines – 156.9 thousand km including spur lines – 44.5 thousand km Compressor stations – 217 Gas pumping units – 3,629 with 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 15 New gas pipeline routes SWEDEN NORWAY FINLAND RUSSIAN FEDERATION IRELAND ESTONIA DENMARK GREAT BRITAIN LATVIA LITHUANIA MOSCOW KAZAKHSTAN BELARUS CZECH POLAND GERMANY REPUBLIC UKRAINE SWITZERLAND FRANCE SLOVAKIA PORTUGAL AUSTRIA ВЕНГРИЯ MOLDOVA SPAIN ROMANIA CROATIA UZBEKISTAN BOSNIA ITALY YUGOSLAVIA BULGARIA GEORGIA TURKMENISTAN MOROCCO АЛЖИР ТУНИС Nord Stream Possible gas transmission route ТУРЦИЯ from the Shtokman field Gryazovets – Vyborg Sokhranovka CS–Oktyabrskaya CS gas pipeline South Stream Kasimovskoye UGS site – Izobilnoye CS gas pipeline NTO – Torzhok Urengoy transit centre expansion 16 Shaping a gas pipeline system in eastern Russia Udachny Yakutsk Sakhalin RUSSIA Mirny centre Yakutsk centre Krasnoyarsk centre Komsomolsk- on-Amur Tyumen Tomsk Tynda Yuzhno-- Sakhalinsk Boguchany Sovgavan Bogandinskaya CS Irkutsk Skovorodino to the USA Krasnoyarsk centre Khabarovsk Chelyabinsk Proskokovo Omsk Taishet Blagoveshchensk Novosibirsk Kansk Chita Kemerovo Abakan Zabaikalsk Barnaul Angarsk Irkutsk Novokuznetsk Ulan-Ude Gorno-Altaisk Nakhodka Vladivostok KAZAKHSTAN Ulan -Bator Tokyo DPRK MONGOLIA Pyongyang JAPAN KOREA Seoul Beijing CHINA Gas production centres Pipeline gas Shanghai LNG 17 Operations on the Russian market 356.0 +14.8% 316.3 +3.0% 310.0 307.0 2005 2006 2005 2006 Gas sales volume, bcm Receipts from gas sales, RUR bln 18 Regulated market sector reduction Increasing the maximum level of changes in regulated gas prices: to 15% in 2007 to 25% in 2008 to 20% in 2009 to 28% in 2010 Introducing a pricing formula in long-term contracts By 2011 sales profitability on the domestic market is planned to be brought in line with the European level adjusted to transportation costs and charges 19 Electronic trading dynamics mln m³ 221 200 258 254 235 165.9 134 94.5 64 90 91 33.7 73 29 95 25 30 25.1 60 1 24.3 3 11.22. 06 12.15. 06 01.07.07 02.01.07 02.09.07 02.15.07 02.20.07 03.01.07 03.12.07 03.15.07 03.20.07 Independent producers Gazprom Group The prices at trading sessions exceeded the regulated ones by 30–40% 20 Gasification of Russian regions The Gasification Program envisages construction of over 12,000 km of gas distribution pipelines between 2005 and 2007 In 2006 122 local pipelines with a total length of 1,313 km were completed In 2007 the Program will enable to increase the number of gasified apartments and households by 15% Gas will be additionally delivered to over 13 mln people In 2006 the Program was funded with RUR 17.6 bln, with RUR 20.2 bln to be invested in 2007 21 Gas export to the CIS and Baltic countries Switching to market relations with the CIS and Baltic countries Expanding presence on the CIS and Baltic markets – acquiring stakes in gas transmission and marketing companies – establishing joint ventures Gas sales volume – 101.0 bcm (up 31.9%), Receipts from sales – RUR 209.7 bln (up 93.5%) 22 European market 161.5 +3.5% 845.9 +36.6% 619.1 156.1 2005 2006 2005 2006 Gas sales volume, bcm Receipts from sales, RUR bln 23 Long-term contracts and strategic agreements Contracts extended with E.ON Ruhrgas – four contracts extended through 2035 for a total supply volume of up to 20 bcm per year OMV – 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 RWE Transgas (Czech Republic) – till 2036. Deliveries will grow to 9 bcm starting 2010 Agreements signed on the Main Terms & Conditions of >20 bcm/yr Gas Deliveries through 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 24 UGS in Europe Agreements concluded to 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 Great Britain Gazprom has obtained the right to tap Jemgum Humbly Grove Hinrichshagen into the Hinrichshagen structure Rehden Poederlee (Germany) for UGS site construction Belgium Bernburg purposes Gazprom takes UGS capacities on Germany Shonkirchen lease (between 2006 and 2007- 400 mln Haidach m³ of working gas volume in Germany Austria and Austria) 25 Diversification of markets and geography of supply Strategy to build up presence on the LNG market Spot deals and LNG-for-pipeline gas swaps From 2005 Gazprom Marketing & Trading has effectuated LNG spot deliveries to the USA, the Great Britain, South Korea, Japan, India and Mexico.