According to the memorandum, Urals Energy will ensure that the Dulisma field is developed according to the company’s stated development plan. The field is scheduled to be in commercial production in 2008-2009. When this occurs, Urals Energy and its affiliates or subsidiaries will sell natural gas from the Dulisma field to Gazprom.

The two companies will also consider co-operation in the production of LPG products, plus other mutual infrastructure projects, such as pipelines and power generation.

The Dulisma field is one of Urals Energy’s major assets, with gas reserves of 1.9m tcf all now fully booked as proved and probable. The field also enjoys a 10-year tax holiday, until December 31, 2016, which is estimated to result in savings of approximately $308 million over the 10-year period.