Gazprom's Board Nods Company's 2008 Investment, Budget

A Board of Directors' meeting has commenced at the Gazprom Headquarters. The Board of Directors has approved the updated Gazprom's Investment Program and Budget (Financial Plan) for 2008.

Under the updated Investment Program, the total amount of developed investments will come to RUB 821.66 bln, which is RUB 111.53 bln up compared to the investment program approved in December 2007. At the same time, the capital investments will account for RUB 531.2 bln (RUB 51.78 bln more as compared to the investment program approved in December 2007), long-term financial investments – RUB 290.46 bln (RUB 59.75 bln more as compared to the investment program approved in December 2007).

Under the new edition of the endorsed Budget the overall cash income & revenues will equal RUB 3.236 trln, which is RUB 311 bln more as compared to the budget approved in December 2007. Total cash liabilities, expenditures and investments will climb RUB 366 bln to RUB 3.38 trln. The volume of financial borrowings will remain unchanged at RUB 90 bln.

The net surplus will account for RUB 1.7 bln.

The Investment Program amendment is driven, in particular, by the adjustment of the investments projected list and the volume of investments for 2008, which was performed taking into account the following aspects:

Gazprom’s operating results for 2007; adjustment of the implementation terms of a number of new projects in Eastern Siberia and the Far East including the pilot commissioning of the Chikanskoye gas and condensate field, gas delivery to the Kamchatka Peninsula and Vladivostok; boosting the Bovanenkovskoye field development and the new Obskaya-Bovanenkovo railroad construction.

Additionally, there was performed an adjustment in the amounts of financing related to the Shtokman field development, the Nord Stream gas pipeline construction, the Sakhalin II project as well as the acquisition of energy assets.

The budget profiles adjustment is conditioned by a change in quantitive and pricing indicators of gas marketing as well as in macroeconomic indicators.