Russ Oil-Gas

July 3, 2006 RBC News - Russia's state-owned oil company Rosneft will supply gas to the gas transportation system of gas monopoly Gazprom. The agreement was reached at the meeting between Rosneft President Sergei Bogdanchikov and Gazprom CEO Alexei Miller on Thursday, Channel One reported. Eduard Tropin, General Director of Rosneft-Purneftegaz (the main production arm of Rosneft), said on Wednesday that his company was in talks with Gazprom to supply between 27 and 28 billion cubic meters of gas a year to the Gazprom system. Rosneft-Purneftegaz hopes for the gas supplies to begin in 2012 or 2013. Miller said his company planned to sign documents for long-term cooperation on joint projects with Rosneft in Eastern Siberia and the Far East. The documents were being prepared by a joint coordinating committee, he added. Rosneft-Purneftegaz has proven reserves of 268 million tonnes of oil and condensate. The company currently develops 23 fields. Its output of oil and condensate is expected to nearly double to 19.6 million tonnes by 2017. Rosneft-Purneftegaz hopes to produce about 10 million tonnes in 2006 and 2007 and 11 million tonnes in 2008. The company has produced 173 million tonnes of oil and condensate since it started operations. Rosneft-Purneftegaz's authorized share capital of RUR 4.455 million is divided into 83.525 million ordinary and 27.842 million preference shares with a face value of RUR 0.04. Rosneft has a 83.09 percent stake in the company. Rosneft's companies produced 74.6 million tons of oil and condensate in 2005, an almost 3.5-fold increase on the previous year, and gas output was up 39.2 percent at 13.1 billion cubic meters.