Open Joint Stock Company Gazprom

SUMMARY INFORMATIONGazprom is the world's largest natural gas company in terms of reserves, transportation andproduction volumes. As at 31 December 2001, wholly-owned Gazprom subsidiaries heldproduction licences for 26.0 tcm of A, B and C1 natural gas reserves (classified in accordance withRussian standards: see Appendix B – Part I – "Overview of the Russian Gas Industry and itsRegulation") and subsidiaries, in which Gazprom holds less than 100% of the Shares, heldproduction licences for another 5.0 tcm of A, B and C1 natural gas reserves, of which 2.1 tcm isattributable to Gazprom in proportion to its shareholding. The Group's total A, B and C1 naturalgas reserves of 28.1 tcm are equivalent to approximately 60% of Russia's estimated total for suchreserves. In addition, as at 31 December 2001, Gazprom through its wholly owned subsidiaries orthrough subsidiaries in which Gazprom holds less than 100% of the Shares, held productionlicences for approximately 1,293.8 million tonnes of A, B and C1 gas condensate (whichrepresents approximately two thirds of such estimated reserves in Russia) and 584.6 milliontonnes of A, B and C1 oil reserves (in proportion to Gazprom's actual shareholding).Gazprom's subsidiaries produced a total of 512.0 bcm of natural gas in 2001 (compared to 523.2bcm in 2000), and this amounted to approximately 88.1 % of Russia's natural gas production in thatyear. As at 31 December 2001, the Group's total number of wells consisted of 9,302 natural gaswells and 569 oil wells.Gazprom owns and operates the UGSS, a single centrally controlled system for natural gasproduction, processing, transportation, storage and deliveries. The UGSS includes the world'slargest high pressure trunk pipeline system. The network is powered by 254 compressor stationswith a total capacity of approximately 42,600 megawatts. The pipeline network (of more than150,000 km) is the most critical link in the system delivering natural gas to consumers withinRussia and abroad. Seasonal peak loads are levelled off using 22 underground natural gasstorage facilities with an active storage capacity of approximately 57.9 bcm. Gazprom's dispatchmanagement centre, located in Moscow, controls and manages the transportation of gas inRussia.Gazprom is the largest supplier of natural gas to Europe. Its market share (according to CEDIGAZ— "Natural Gas in the World — 2001", Survey August 2002) in the European natural gas marketwas 25.9% in 2001. Gazprom also supplies most of the natural gas consumed in Russia andcertain countries in the FSU. In 2001, Gazprom exported 127.0 bcm of natural gas to Europe. Afurther 39.6 bcm of natural gas was exported to the FSU. Deliveries of natural gas to Russianconsumers in 2001 amounted to 282.1 bcm.Revenue from natural gas exports to Europe for the year ended 31 December 2001 amounted toU.S.$15.0 billion (including excise tax but net of VAT) (compared to U.S.$15.7 billion for the yearended 31 December 2000). Sales of natural gas in the FSU market for the year ended 31December 2001 produced revenue of U.S.$1.6 billion (including excise tax but net of VAT) ascompared to U.S.$2.3 billion for the year ended 31 December 2000. Revenue from natural gassales in Russia for the year ended 31 December 2001 totalled U.S.$3.8 billion (including excisetax but net of VAT) (compared to U.S.$3.4 billion for the year ended 31 December 2000).15