Development Strategy for Gazprom’s Oil Business Approved During Presentation by Gazprom Neft President

Development Strategy for Gazprom’s Oil Business Approved During Presentation by Gazprom Neft President

Moscow, May 25, 2006. The Gazprom Executive Board has reviewed and approved the strategy for development of the company's oil business as presented today by Gazprom Neft President Alexander Ryazanov. The strategy calls for an increase in annual oil production to 80 million tons by the year 2020. Annual growth in production over that period should reach 4%, about twice that of the world's other energy majors.

The production plan through the year 2020 envisions the exploitation of all of Gazprom Neft's explored oil fields (including the company's 50% stake in Slavneft), as well as the expansion of its reserve base by developing fields currently on Gazprom's balance sheet, and acquiring new assets.

In terms of refining and marketing, Gazprom Neft will focus on expanding its oil processing capacity, finding synergies with Gazprom's other refining assets, maintaining exports as a percentage of production, and further developing its retail network.

Gazprom's oil business will continue to operate on the principle of vertical integration. Gazprom Neft will finance its own investments, without employing funding from Gazprom.

"The strategy for advancing Gazprom's oil business, as set forth today by the Executive Board, opens up some very optimistic prospects for stable growth at Gazprom Neft as a result of the inclusion of Gazprom's oil reserves and the preservation of a vertically-integrated management structure," said Gazprom Neft President Alexander Ryazanov.

The Gazprom oil strategy approved by the firm's executives today will now be submitted for consideration by the company's Board of Directors.