Gazprom and ITERA signed a cooperation memorandum in relation to gas of Bratsk gas and condensate field

Alexander Ananenkov, Deputy-Chairman of the Executive Board of OAO Gasprom, and Vladimir Makeev, Chairman of the Management Board of ITERA Oil and Gas Company, signed a cooperation memorandum in relation to gas of Bratsk gas and condensate field (Irkutsk area) in Irkutsk today, - the Gazprom press release says.

The document envisions the joint implementation of a set of actions within the framework of the General Scheme of Gas Supply and Installation of Gas Service in Irkutsk Area.

In particular, ITERA shall commission Bratsk gas and condensate field before 2008. This field shall serve a source of hydrocarbon raw material for gas supply in the area.  Bratskecogaz, an affiliate of ITERA Oil and Gas Company, holds the area development license. Produced gas shall be sold to Gazprom under the agreed terms and conditions.

Moreover, these companies shall be involved in joint construction of infrastructure to allow for transportation of gas condensate from the field to consumers.

"The memorandum signed today is an important step in implementation of the General Scheme of Gas Supply and Installation of Gas Service in Irkutsk Area, and in implementing by Gazprom of the government of the Russian Federation assignment to coordinate gas projects in Eastern Siberia and the Far East.  Gazprom and ITERA are starting a new stage of social and economic development of Irkutsk area", - stressed Alexander Ananenkov.

"The joint usage of production and technological resources of Gazprom and ITERA in installing the gas service in Irkutsk area meet the best interests of both these companies, and the state", - Vladimir Makeev pointed out.  The order of the government of the Russian Federation  #975 as of July 16, 2002, appointed OAO Gasprom a coordinator of activities re3lated to implementation of the Program intended to establish in Eastern Siberia and in the Far East of a uniform system of production and transportation of gas and of gas supply, provided there might be a need to export gas to China and to markets of other countries of the Asia-Pacific Region.

The General Scheme of Gas Supply and Installation of Gas Service in Irkutsk Area was approved by the instruction of the Administration of Irkutsk area on December 28, 2005.  It envisions an integrated formation in the territory of the area of a regional system for production and transportation of gas and gas-supply based on the local sources of hydrocarbons. The general scheme relies on the existing medium-size and smaller fields. The demand of the South of the area shall be met with gas of Yuzhno-Kovytkinsky zone at an initial stage.

The General Scheme allows for gas supply to 899 population centers in 32 regions of Irkutsk area and envisions the construction of gas pipelines, gas branch-pipes, gas networks, the formation and development of the regional market of gas.  OAO Gazprom is appointed operator for the implementation of the General Scheme. The gas supply is to begin in 2007.

OAO Gasprom owns sub-soil use licenses for Western and Eastern parts of Kovytkinsky zone.

OAO Gazprom and ITERA Oil and Gas Company signed a partnership agreement for the period of 2006-2010 in June 2006. This is a wide-range agreement. In particular, it envisions cooperation in expanding, reconstruction and modernization of the General Scheme of Gas Supply and Installation of Gas Service by OAO Gasprom in accordance with the General Scheme of the Development of the Gas Industry in the Period until 2030; it includes creation of joint  gas-oil-chemistry production facilities; the sale of gas to Gazprom; the supply of gas to gas processing plants of Gazprom; protection of ecology.

Bratsk gas condensate field is located 27 km off Bratsk. Annual production at the field is expected at about 400 mln cu m of gas.

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