Speech by Alexey Miller, Chairman of the Management Committee, OAO Gazprom Gazprom: New Horizons Annual General Shareholders Meeting. June 30, 2011 It is proposed that the Shareholders Meeting approve: . OAO Gazprom Annual Report 2010 . Annual Accounting Statements . Distribution of profits and the proposals on the amount of, time for and form of the dividend payment . PricewaterhouseCoopers Audit as the Auditor 2 Gazprom: New Horizons Hitting Pre-Crisis Levels Gas reserves added through 547.7 3 geological exploration, billion m 468.8 Hydrocarbons production, 649 million t (fuel equivalent) 592 508.6 3 Gas production, billion m 461.5 52.6 * Oil production, million t 48.6 * 2010 2009 * Including shares in associated companies 3 Gazprom: New Horizons Upward Trend in Financial Performance OAO Gazprom Gazprom Group 4,000 3,661.7 3,500 3,384.7 3,118.5 3,000 2,879.4 2,507.0 2,486.9 2,500 2,000 1,500 1,257.5 1,166.4 844.5 1,000 895.6 822.4 553.3 500 0 2008 2009 2010 2008 2009 2010 Sales, RUB billion Profit from sales, RUB billion 4 Gazprom: New Horizons Dividend Growth Dividend per share, RUB 3.85 4 3 2.39 2 The Board of Directors recommend 1 paying out RUB 3.85 per share in 0.36 dividends to the shareholders 0 2008 2009 2010 recommended 5 Gazprom: New Horizons Export Supplies Recovery Supplies beyond Russia in H1 2010–2011, billion m3 Early 2011 performance: 140 128.7 . In Q1 2011 the European consumers increased 120 102.2 gas offtake by 12% versus the same period 100 of 2010 80 . In H1 2011 the gas supplies beyond Russia showed a 26% growth versus the same period 60 of 2010 40 20 0 2010 2011* * Preliminary results 6 Gazprom: New Horizons New Factors Boosting International Gas Trading . Revision of nuclear power generation programs . Decline of indigenous gas production in Europe . Re-estimation of political risks associated with individual suppliers . Reduction of subsidies for energy alternatives . Intensified growth of energy demand in Asia and domestic markets of gas exporting countries 7 Gazprom: New Horizons Hydrocarbon Reserves Replenishment by Gazprom Group Hydrocarbons production, Reserves added through geological million t (fuel equivalent) exploration, million t (fuel equivalent) 797 800 761 696 678 700 649 592 583.4 600 549.7 billion m3 547.7 3 508.6 3 billion m billion m 500 461.5 billion m3 468.8 billion m3 billion m3 400 300 200 100 0 2008 2009 2010 2008 2009 2010 Gas Condensate Oil 8 Gazprom: New Horizons Production Performance Gas production, billion m3 Liquid hydrocarbons production, million t 600 70 5.2 10.5 500 60 21.6 7.4 16.5 19.8 549.7 50 400 461.5 508.6 40 42.9 43.3 300 41.7 30 200 20 100 10 0 0 2008 2009 2010 2008 2009 2010 Gazprom Group Gazprom Group owned shares in associated companies Capital investments of Gazprom Group in exploration and production totaled RUB 202.4 billion 9 Gazprom: New Horizons Key Investments in Gas Production Kara Sea Bering Sea Bovanenkovskoye Kamchatka B a Peninsula id a ra Kshukskoye ta Yamal B a y Peninsula Yamburgskoye Nizhne-Kvakchikskoye Fields pre- development Sea of Sobolevo Yamburg Tazovsky Okhotsk Hydrocarbons production y Petropavlovsk- a Zapolyarnoye Kamchatsky B b O Onshore fields Pacific Urengoyskoye Ocean Offshore fields Urengoy Novy Urengoy Gas mains Nadym Yuzhno-Russkoye 10 Gazprom: New Horizons Oil Business Development Oil production by Gazprom Group, million t 52.6* 50 48.6* . Creation of a new production center in northern Yamal-Nenets Autonomous Okrug, 40 development of the Novoportovskoye field and the Messoyakhskaya group of fields 30 . Building up the resource base through new 20 acquisitions as well 10 0 2009 2010 * Including shares in associated companies 11 Gazprom: New Horizons Kirinskoye Field Pre-Development within Sakhalin III Project Sea of Onshore Kirinskoye gas Okhotsk processing facility Okha (existing) and condensate field (GCF) Piltun Boatasino Nogliki Onshore processing facility Kirinskoye GCF (new) Pacific Ocean Tatar Strait Sakhalin Island Drilling platform Oil pumping station GCS No.2 OPS No.2 Onshore processing facility Subsea production complex Ilyinsky Liquefied natural gas (LNG) plant Multiphase pipeline Sea of Yuzhno-Sakhalinsk Okhotsk Oil export terminal (OET) Umbilical Prigorodnoye LNG plant Gas compressor station Satellite well Sea of OET Japan 12 Gazprom: New Horizons First Coalbed Methane Production Facility in Russia Zhernovo village UM-5.8 Shift camp UM-5.7 UM-5.6 UM-5.4 UM-5.5 УППГGas pre-treatment unit АГНКСGas filling station UM-5.9 ООО Gazprom dobycha Kuznetsk UM-5.10 (eastern block of Taldinskaya area) Kuznetsky basin Taldinskaya 13.1 area 6.0 Gas pipeline route Exploratory wells Forecasted CBM resources, trillion m3 13.1 Kuznetsky basin, including 6.0 Taldinskaya area 13 Gazprom: New Horizons Exploration and Production Abroad Uzbekistan United Kingdom Exploration in Wingate Ustyurt region Shakhpakhty Kyrgyzstan Eastern Mailu-Suu IV and Serbia Kugart investment blocks NIS projects Tajikistan Rengan, Sargazon, Sarykamysh, Western Cuba Algeria Shaambary licensed blocks Offshore blocks El Assel Venezuela No.44, 45, 50 licensed block Urumaco I and and 51 Vietnam Urumaco II blocks, Blocks No.112 (expanded), No.129–132 Junin-6 block Iraq India Libya Badra Block No.26 Bolivia Licensed blocks Ipati and Aquio No.19 and No.64 blocks Concessions C96, C97 Equatorial Guinea T, U blocks Hydrocarbons prospecting Gas and gas Oil production and exploration condensate production Projects launched in 2010 14 Gazprom: New Horizons Unified Gas Supply System Gas pumped into Gazprom’s UGSS in Russia, billion m3 Implementation of domestic gas transmission 661.2 projects in 2010 resulted in commissioning of: 650 589.7 600 . 1,338.6 km of gas trunklines and laterals 550 500 . A 64 MW line compressor station 450 400 350 300 2009 2010 15 Gazprom: New Horizons New Gas Trunklines in Eastern Russia Sobolevo – Petropavlovsk-Kamchatsky gas pipeline Sakhalin – Khabarovsk – Vladivostok gas transmission system Bering Sea Piltun-Astokhskoye Kamchatka Peninsula Lunskoye Khabarovsk Krai Sea of Komsomolsk-on- Okhotsk Kshukskoye Amur Yuzhno- Sakhalinsk Nizhne- Kvakchikskoye Khabarovsk Sobolevo Primorsky Krai Japan Petropavlovsk- Kamchatsky China Sea of Okhotsk Pacific Ocean Vladivostok Sea of Japan Hydrocarbons production Offshore hydrocarbons production Gas mains 16 Gazprom: New Horizons Gas Transmission Projects Barents Sea RUSSIA Urengoy Norwegian Sea Murmansk 4 6 Atlantic Ocean Peregrebnoye 5 1 Surgut Ukhta 12 Oslo Yugorsk Helsinki Vyborg Dublin North Sea Stockholm St. Petersburg Novosibirsk 3 Tallinn Gorno-Altaisk 2 Tyumen Barnaul Copenhagen Gryazovets Perm London Baltic Sea 8 Amsterdam Torzhok Pochinki Brussels Vilnius Moscow Voskresensk Kazan Ufa Astana RUSSIA Berlin Warsaw Bay of Paris Minsk Tula 10 Biscay Orenburg Prague Yelets Petrovsk Sobolevo Bern Petropavlovsk- Vienna Bratislava Kiev Alexandrov Gai Okha Kamchatsky Lisbon Ljubljana Frolovo Madrid Novopskov Kishinev Zagreb Astrakhan Бишкек Rostov-on-Don Komsomolsk- Sea of Okhotsk Belgrade on-Amur Rome Sarajevo Bucharest C 7 a s Yuzhno- Sofia 9 p ia Khabarovsk Sakhalinsk Black Sea 11 n Tbilisi S Dushanbe Algiers e a Baku Tunis Yerevan Sea of Valetta Athens Ankara Ashgabat Japan Pacific Ocean Mediterranean Sea VladivostokKabul 1 SRTO – Torzhok 5 Murmansk – Volkhov 9 South Stream route options 2 Gryazovets – Vyborg 6 Bovanenkovo – Ukhta and Ukhta – Torzhok 10 UGSS expansion for South Stream 3 Nord Stream 7 Sakhalin – Khabarovsk – Vladivostok GTS 11 Dzhubga – Lazarevskoye – Sochi 4 Urengoy hub expansion 8 Pochinki – Gryazovets 12 Altai 17 Gazprom: New Horizons Underground Gas Storage in Russia Barents Sea Baltic Sea Finland Kara Sea Sea of Okhotsk Kaliningrad St. Petersburg Arkhangelsk Gatchinskoye Nevskoye Belarus Russia Ukhta Khabarovsk Kaluzhskoye Moscow Yaroslavl Urengoy Shchelkovskoye Kaluga Tula Punginskoye Uvyazovskoye Kasimovskoye Yugorsk Kazan Surgut Karashurskoye Perm Ukraine Saransk Peschano- Izhevsk Umetskoye Yelshano-Kurdyumskoye China Dmitrovskoye Sea of Stepnovskoye Samara Tyumen Rostov-on-Don Amanakskoye Japan Kushchevskoye Mikhailovskoye Kiryushkinskoye Krasnodarskoye Volgograd Kumertau Armavir Kanchurinskoye Musinskoye Omsk Tomsk Stavropol Sovkhoznoye Severo-Stavropolskoye Novosibirsk Kemerovo Caspian Sea Barnaul Irkutsk Novokuznetsk Kazakhstan Gorno-Altaisk Existing UGS facilities with working gas capacity below 5 billion m3 Exploration areas for UGS facilities Existing UGS facilities with working gas capacity over 5 billion m3 Gas mains UGS facilities being constructed and designed 18 Gazprom: New Horizons Existing and Projected UGS Facilities Abroad Norway 2.3 Capital investments of the Group Latvia Incukalns Sweden RUSSIA Lithuania in underground gas storage equal Baltic Sea Denmark AtlanticAtlantic OceanOcean RUB 17.4 billion Belarus North Sea United Kingdom Ukraine Rehden Poland Ireland 4.5 0.2 4.0 Katharina (Peissen) Humbly Grove Bergermeer Netherlands Damborice Germany 0.6 Czech Republic Moldova Saltfleeby 0.8 Belgium Slovakia 2.8 Hungary Black Sea Austria Hungarian UGS Romania Haidach 0.5 Switzerland Slovenia Croatia France Bosnia and Banatski Dvor Herzegovina Bulgaria Serbia Georgia Italy Macedonia Turkey Albania Azerbaijan Mediterranean Sea Greece AbovyanPortugal 0.1 Spain Armenia Turkey Working gas capacity of existing UGS facilities used by Projected UGS facilities with participation of OAO Gazprom 4.8 3 OAO Gazprom, billion m Gas mains 0.6 Working gas capacity of planned UGS facilities with Nord Stream gas pipeline and South Stream gas pipeline participation of OAO Gazprom,