21.10.2010 г. JSC GAZPROMNEFT

JI PROJECT YETY-PUROVSKOE,

POST KYOTO POSSIBILITIES

IN ENERGY SAVING

PROJECT DIRECTOR

NIKOLAY SEREGIN

ENVIRONMENTAL AND SOCIAL IMPACT OF THE PROJECT IN THE REGION

about 40% of associated gas from the wells of the oilfields is utilized in the gas processing plants

40% is used for electricity production, the rest 20% is being flared

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GAZPROMNEFT-NNG

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JI - JOINT IMPLEMENTATION MECHANISM

JOINT IMPLEMENTATION - THE WAY FOR RUSSIAN COMPANIES TO USE KYOTO MECHANISM

GAZPROMNEFT STARED RESEARCH SINCE 2006

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ETY-PUROVSKOE OILFIELD

TILL AUGUST 2008 FLARING OF ASSOCIATED GAS WAS THE ONLY WAY TO DEAL WITH IT CREATING СО2 EMISSION

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Yety-Purovskoe oil field in Yamal-Nenets autonomous region

On-site use for associated gas 0,4% in 2008

Investment committee decision 23 April 2008 to implement utilization project taken into consideration Kyoto Protocol

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PROBLEMS OF JI IMPLEMENTION

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DELAY OF RATIFICATION

IN RUSSIA

NO LEGAL REGULATION TILL THE END OF 2007

TENDER PROCEDURE

DELAYS2010

TENDER PROCEDURE

DELAYS2010

2 3 4

NEW REGULATION

SINCE NOVEMBER 2009

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PIN

INITIAL CHECK UP BY THE COMPANY

CHECK UP OF THE COMPLIANCE WITH

CRITERIA OF JI

BASE LINE

PDD

MAIN STEPS FOR JI IN RUSSIA TRACK 1

JI

Partners

Sberbank of Russia

Ministry of Economic Development of the Russian Federation

Ministerial act

EXPERT COUNCIL

VERIFICATION

DETERMINATION PROCEDURE BY

AIE

Letter of approval

ERU

LEGAL CONSULTANTS

TENDER TERMS Letter of Approval by the

Government of JapanMONITORING

REPORTS

FRAMEWORK AGREEMENT

WITH PARTNER

– technical part

– registration and tender

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Gazprom Pipeline

Yety-PurovskoeYety-Purovskoe

PROJECT SCHEME

Start of the Project (August 2008)VingayahinskoeVingayahinskoe

NovogodneeNovogodnee

VingapurovskoeVingapurovskoe

YarainerskoeYarainerskoe

NoyabrskNoyabrsk

Vingayahinskoe CSVingayahinskoe CS

Vingapurovskoe CSVingapurovskoe CS

AG

AG

AG

AG

AG

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Russia (Host Party):

JSC Gazprom Neft

JSC Gazpromneft-Noyabrskneftegaz

Japan:

Nippon Oil Corporation

Mitsubishi Corporation

Project participants:

PARTNERS

Mitsubishi corporation and Nippon Oil corporation:

Nippon Oil corporation – the author of methodology AM009 for the projects of utilization of associated gas from oil wells which is usually burnt.

Methodology approved by UN

Mitsubishi corporation is number 3 in the rating of the leading world developers of such projects (Reuter 2008)

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Kyoto protocol is valid till 2012 but Kyoto mechanisms including JI are not restricted by time and may be used by interested parties

Alternative schemes to increase project feasibility and energy efficiency

GAZPROMNEFT will reduce CO2 emissions by decreasing flaring with a target of 95% utilization of associated gas within 3 years

KYOTO AND POST KYOTO POSSIBILITIES

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THANK YOU