Project documentation for drilling in2014 ofanexploration well atthe Dolginskoye field onthe shelf ofthe Pechora Sea has been approved following public consultations, which were held inDecember 2013 inthe town ofNaryan-Mar (Nenets Autonomous District). The approved documents include aprevention and response plan for oil spills aswell asanenvironmental impact assessment. The project documentation has been supplemented byanenvironmental sensitivity map ofthe region, prepared onthe basis ofmonitoring, which was carried out atthe license block in2013.

The exploration well atthe Dolginskoye field will bedrilled using the GSP Saturn jack-up unit, which was chartered from its owner, the Rumanian company Grup Servicii Petroliere S.A. (GSP), atthe end of2013. GSP Saturn underwent afull modernization in2009, including installation ofthe latest drilling and marine equipment, and has also been specially prepared towithstand wind, waves and low temperatures infar northern latitudes. Anumber ofspecialized technical audits have confirmed that Saturn isahigh-tech unit with specifications that make itsuitable for use onthe Russian Arctic shelf during ice-free months.

The rig isequipped with aspecial unit toprotect marine life (afilter device that prevents harm tomarine organisms during transport and operation ofthe platform). Anautomatic verticality control system (rotary steerable system) will beused during drilling tooptimize drilling time and maximally reduce environmental disturbance. Use ofLWD (lodging-while-drilling) sensors will enable continuous, real-time control during operation.

Gazpromneft Sakhalin LLCis asubsidiary ofGazprom Neft and has experience implementing projects onthe Russian continental shelf. Inautumn 2012, JSC Gazprom and Gazpromneft Sakhalin made acontract for geological exploration, industrial development and operation ofthe Dolginskoye oil field onthe shelf ofthe Pechora Sea.

The Dolginskoye oil field, discovered in1999, islocated inthe central part ofthe Pechora Sea, 120km south ofthe Novaya Zemlya archipelago and 110km north ofthe Eurasian mainland. Sea depth inthe area is35-55 meters. More than 11,000 linear kmof2-D seismic and 1600 square kmof3-D seismic surveys have been carried out atthe field. Three exploration wells have been completed (two inthe northern and one inthe southern part ofthe field). One more exploration well isplanned tobedrilled inthe northern part ofthe field in2014. Recoverable reserves are currently estimated inexcess of200 million tons ofoil equivalent.

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