OAO Gazprom (Gazprom) has started exploration drilling in the Kirinskoye field offshore the Sakhalin Peninsula. The start of geological exploration in the Kirinskoye field will create a new gas production area offshore Sakhalin as part of the state Eastern gas program. Starting from 2014, the Kirinskoye field will turn into a gas source for the Sakhalin - Khabarovsk - Vladivostok gas transmission system being constructed.

The field will supply gas to consumers of the Khabarovsk and Primorsky Krais and the Sakhalin Oblast.

To develop Sakhalin’s potential hydrocarbon resources, the company will make the maximum use of the capabilities of domestic shipbuilding and machine-building companies.

Discovered in 1992, the Kirinskoye gas condensate field is located within the Kirinsky block of the Sakhalin III project offshore the Sakhalin Peninsula (Sea of Okhotsk). The subsurface license was granted to Gazprom in line with the Russian Federation Directive No. 666-r on May 6, 2008.

The Kirinskoye field ABC1+C2 reserves account for 75.4 billion cubic meters of gas and 8.6 million tons of gas condensate. The field is slated for commissioning in 2014.

The State development program for an integrated gas production, transportation and supply system in Eastern Siberia and the Far East, taking into account potential gas exports to China and other Asia Pacific countries (Eastern gas program) was approved in September 2007 by the Russian Energy Ministry order. Gazprom was appointed by the Russian government as the Program execution coordinator.

Among gas trunk-line projects the Sakhalin – Khabarovsk – Vladivostok gas transmission system (GTS) is a top priority of the Eastern gas program. In pursuance of the assignment by the Russian government and the decision by Gazprom’s board of Directors adopted in September 2008, the work is currently underway to create this GTS for the purpose of developing gas supply to the Khabarovsk Krai and Sakhalin Oblast, and arranging gas supply to the Primorsky Krai starting from the third quarter of 2011.

At present, Gazprom holds 45 licenses for the right to use the subsurface resources in Eastern Russia: the Krasnoyarsk Krai, Irkutsk Oblast, Republic of Sakha (Yakutia), Chukotka Autonomous Okrug, and the Sea of Okhotsk and Bering Sea offshore areas. Gazprom is performing geological exploration in the Krasnoyarsk and Kamchatka Krais, Irkutsk Oblast and the Sakhalin Island offshore.

In June 2009, the Russian government adopted the decision to award Gazprom the rights for the subsurface resources of the Kirinsky, Vostochno-Odoptinsky and Ayashsky blocks of the Sakhalin III project and the Zapadno-Kamchatsky prospect.