September 30, 2008

Rosneft and World Bank Sign ERU Purchase Agreement

Russian oil company Rosneft and The World Bank have signed an emission reduction purchase agreement for emission reduction units accumulated as a part of the associated gas utilization project at Rosneft's Komsomolskoye oil field in the Yamal-Nenez autonomous region of Russia.

The oil field is being developed by the Rosneft's subsidiary, Rn-Purneftegaz. The World Bank has acted on behalf of the European, Danish, Italian and Spanish carbon funds. During the 20082012 period Rosneft has planned to allocate a minimum 5.32 million emission reduction units (ERUs) in the funds.

The infrastructure building program required for the associated gas processing and transmission on the Komsomolskoye field is aimed to increase the level of the gas utilization within Russian and international procedures as the part of the Kyoto Protocol implementation. The gas from this field will be transmitted to Russian gas monopoly Gazprom's Unified Gas Supply System.

Rosneft is prepared to invest about RUB4 billion at this stage of the gas utilization project. Additional ERU purchase agreements are expected to help increase the economic efficiency of production within the framework of the project.