YUKOS and Gazprom Discuss Prospects for Cooperation on Gas

A working meeting took place at the head offices of OAO Gazprom between Management Committee Chairman Alexey Miller and Simon Kukes, Chairman of the YUKOS Oil Company Management Board and Board of Directors.

They discussed the prospects for the two companies' cooperation on gas in view of YUKOS' plans to develop its gas business. YUKOS produced 5.65 billion cubic meters of gas in 2003. However, the Company plans to be producing 15 billion cubic meters of gas annually as early as the end of 2005, 40 billion cubic meters by 2010, and 50 billion cubic meters by 2015.

"In order to realize our plans for the development of the gas business, we intend to actively develop relations with Gazprom," announced Simon Kukes. "Close cooperation with the company that is the leader in the gas sector will allow us to attain the targets we have set."

"We are conducting an open dialogue and are ready for cooperation with all independent gas producers," said Gazprom Management Committee Chairman Alexey Miller. "Together with this, such cooperation can be built only on civilized principles. We are speaking of the introduction of long-term contracts for the purchase of gas, the participation of independent gas producers in the reconstruction, modernization, and creation of new gas transport capacity, the improvement of rules of access to the gas transport system that prescribe bilateral obligations to ensure and pay for transport. All market participants must have not only equal rights, but obligations as well. Only under this condition will it be possible to build a civilized gas market in Russia."