Gazprom Neft Brings Phase One of Yuzhno-Priobskaya GTPP in KhMAO into Operation

Gazprom Neft has brought into operation Phase One of Yuzhno-Priobskaya gas turbine power plant (GTPP) at Priobskoye field (KhMAO) to meet the needs of the Company oilfield facilities. GTPP Phase One output provides for 48 MW. Capital investment for completing the Phase One totals to RUR2.4 bln.

The power station commissioning ceremony was held on December 19, 2009 in Khanty-Mansiysk in the presence of Chairman of Gazprom Neft Management Board Alexander Dyukov and the Governor of KhMAO Alexander Philipenko.

The construction of Yuzhno-Priobskaya power plant has several advantages. Gazpromneft-Khantos’ demand for electric power equals to 75 MW at the present moment, and power consumption according to the Company’s experts will grow up to 95 MW by 2010. A substantial increase in price for electricity from RUR1.59 per kWh in 2009 to RUR2.29 per kWh in 2011 for Tyumen power system is expected.

Priobskoye oilfield development strategy stipulates a necessity for putting into operation Phase Two of the electric plant, which is currently under construction and expected to be fully commissioned at the end of 2010. The Phase Two of the power plant will enable Gazpromneft-Khantos to increase generating capabilities up to 96 MW and will fully satisfy its energy demand.

According to the statement of the Chairman of Gazprom Neft Management Board Alexander Dyukov:

“The Company puts great emphasis on construction of power generating facilities, which will allow cutting down expenses for grid power consumption substantially and reducing the cost of oil production.

Priobskoye oilfield is a key Gazprom Neft’s asset, which accounts up to 18% in the Company’s oil production. Construction of Yuzhno-Priobskaya power plant at the field will allow boosting the Company’s production figures. I believe that completion of power plant construction under conditions of economic decline and launching of such complicated and high-technology installation as a power plant represents a significant accomplishment of Gazprom Neft”.