Gaining Momentum Gazprom Investor Day February 2010 1 Moscow, London, New York Disclaimer This presentation has been prepared by OJSC Gazprom (the “Company”), and comprises the slides for a presentation to investors concerning the Company. This presentation does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares or other securities representing shares in the Company, nor shall it or any part of it nor the fact of its presentation or distribution form the basis of, or be relied on in connection with, any contract or investment decision. No reliance may be placed for any purposes whatsoever on the information contained in this presentation, or any other material discussed at any presentation or on its completeness, accuracy or fairness. The information in this presentation should not be treated as giving investment advice. 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By attending the presentation you agree to be bound by the foregoing limitations. 2 Today’s Speakers Vlada Rusakova Growth Strategy Member of Gazprom Management Committee Head of Strategic Development Department Alexander Medvedev Strong and Growing Customer Base Deputy Chairman of Gazprom Management Committee Director General of Gazprom Export Andrey Kruglov Solid Financial Position Deputy Chairman of Gazprom Management Committee Head of the Department for Finance and Economics Vadim Yakovlev Gazprom Neft: Oil Business Development Deputy Chairman of the Management Board and CFO of Gazprom Neft Denis Fedorov Gazprom Energoholding: Power Generation Head of Gazprom Directorate for Development of Power Generation Sector and Business Development Power Generation Marketing, General Director of Gazprom Energoholding 3 Part 1. Growth Strategy Vlada Rusakova Member of Gazprom Management Committee Head of Strategic Development Department 4 New Energy Strategy of Russia 2030 Primary Energy Resources Energy Resources Export GDP Energy Intensity (1) Mtoe Mtoe 3,4% 2 000 800 4,4% 1 000 96.6% 600 50% 95.6% 43% 32% 85% DECREASE 43% 0 400 53.2% 61.3% -1 000 46.8% 200 68% 57% 38.7% 2008 2030 -2 000 0 2008 2030 2008 2030 Production Import Consumption Export Oil, oil products, coal and other Gas Total Final Consumption Oil Other Other Oil Coal Coal 10% 14% 22% 18% 19% GAS : 19% INCREASE IN VOLUME, 53% SHARE REDUCTION 45% Gas Gas 2008 Source: Energy Strategy of Russia 2030 2030 1. Compared to 2005 levels 5 Growth Strategy Indicators for Russian Gas Industry Development by 2030 885-940 bcm Production Transportation Export in 2030 100% 100% 100% 50% 39% 50% 50% 23% 20% 2% 3% 0% 0% 0% 2008 2030 2008 2030 2008 2030 Share of new regions Share of new pipelines Share of Asia 100% 100% 100% Production growth Production 50% 50% 50% 27% 26% 33-42 % 17% 15% 4% 664 bcm 0% 0% 0% 2008 2030 2008 2030 2008 2030 in 2008 Share of independent producers Share of reconstructed length Share of LNG Source: Energy Strategy of Russia 2030 6 Growth Strategy General Plan of Russian Gas Industry Development 2030 Key highlights: Identification of main drivers of gas industry development (production, transportation, refining volumes; investment forecast for reconstruction and new facilities) Identification of key factors that will ensure effective development of the gas industry Risk assessment and mitigation through administrative decisions Recommendations to the State on how best to support the development of the gas industry General plan specifies the most effective way for gas industry development 7 Growth Strategy Gas Demand Outlook Russia 600 bcm USA Europe and FSU Countries 400 1 000 1 000 bcm bcm 200 800 800 600 600 0 400 400 2008 2010 2015 2020 200 200 0 0 North -East Asia 2008 2010 2015 2020 2008 2010 2015 2020 600 bcm 400 200 0 2008 2010 2015 2020 Alternative Forecast Source: Gazprom, CERA, IEA, Cedigaz, EC, IEEJ, MOCIE, EIA 8 Growth Strategy Gazprom’s Supply Volumes to Target Markets Europe and other countries (1) FSU countries (1) Russia 600 bcm 600 bcm 400 bcm 500 - 560 411 402 400 400 320 - 345 200 200 160 200 140 90 - 100 85 55 0 0 0 2008 2009E 2030E 2008 2009E 2030E 2008 2009E 2030E Possible growth of supply due to gas demand increase LNG New contracts/ volumes to Asia Pacific Region, incl. pipeline gas Ukraine Other FSU Baltic States Gazprom Independent Gas Producers Contracted volumes to Europe 1. Net export 9 Growth Strategy Gas Production Scenarios bcm bcm 700 700 600 650 500 600 550 400 500 300 450 200 400 100 350 0 2008 2009E 2010E 2015E 2020E 2030E 2008 2009E … 2030E - Gydan peninsula - Eastern Siberia and Far East - Arctic Shelf - Yamal peninsula fields - New fields in Nadym-Pur-Taz - Currently existing projects - Production Alternatives Gazprom mobilises reserves and develops its production and transportation system in response to market demand without creating excess capacity 10 Growth Strategy Major Projects Development 11 Growth Strategy Expansion of Gas Chemicals Production Significant Change in Gas Components 1 000 bcm 750 46% 59% 63% 24% 500 76% 250 54% 41% 37% 0 2008 2016-2020 2021-2025 2026-2030 Methane gas Gas with high content of ethane, propane, butane Volumes of Gas Processing Products (1) 60 mln ton 50 40 30 20 10 0 2008 2010E 2015E 2020E 2025E 2030E 1. Excluding Salavatnefteorgsintez 12 Growth Strategy Planned Capital Expenditure Planned CAPEX (annual average) Planned CAPEX (2010 -2030 in total) bln RR p.a. Shtokman 800 Yamal Eastern Siberia and Far East Development of Transportation System Reconstruction in Transportation 600 Reconstruction in Production Others 10% 21% 400 5% 30% 200 16% 11% 7% 0 2010-2016 2017-2023 2024-2030 Exploration Production Transportation Processing Others 13 Growth Strategy Innovation Megaproject «Yamal» Efficiency of Innovations Exceeds the Efficiency of Any Other Project Trunk Gas Pipeline Network Creating Transportation Infrastructure on the Yamal peninsula Bovanenkovo-Ukhta Unique combination of technical specifications: Мостовой п-ов Ямал Obskaya - Bovanenkovo railway bridge crossing the Yuribei river Карское море – 115 Bnm 3/ year production capacity железнодорожной The world's longest bridge built north of the Arctic Circle Бованенковское – 11.8 MPa (120 atm.) transportation pressure ст .Бованенково Cost effectiveness as a result of bridge construction – RUR 1.1 bln КС 1 Байдарацкая Республика – 1100 km length (2 routes), 1420 mm diameter КС Ярынская Коми 2 ст .Сохонто разъезд Хралов КС 3 Гагарацкая Baydaratskaya Bay subsea pipeline - 71 km Печора ст .Паюта КС 4 Воркутинская а б КС 5 Усинская ст .Обская у Cost to Gazprom of developing innovative solutions for the project г я ка КС Интинская с 6 б О КС 7 Сынинская – RUR 1.3 bln КС 8 Чикшинская КС 9 Малоперанская Обь Ямало -Ненецкий ст .Ухта автономный округ Rate of Return – 1526% a year Field Development and Infrastructure Construction High-Strength 1420 mm 11.8 MPa (120 Atm.) Rated Pipes Трубы СистемаMulti-zone structure development system. Use of High-strength and cold-resistant pipes with high steel Использованиеwells with insulated pipes. Use of horizontal and с высокимviscoplasticity. No risk of extended damage to the gas трубамиmulti-hole