27/10/2006 The London Stock Exchange welcomes Gazprom to open the London markets, celebrating 10 years on the Main Market of the Exchange.
27 October 2006
The London Stock Exchange welcomes Gazprom to open the London markets, celebrating 10 years on the Main Market of the Exchange.
Gazprom is the world’s largest natural gas company, and the world’s largest hydrocarbon publicly-traded company in terms of reserves, production and transportation. It supplies the majority of natural gas consumed in Russia, a significant proportion of natural gas consumed in the Former Soviet Union countries and over a quarter of natural gas consumed in Europe. Gazprom’s corporate structure comprises a large number of subsidiaries engaged in hydrocarbons production, processing and refining, transportation, and marketing.
Gazprom’s production of natural gas, gas condensate and crude oil has been rising steadily over recent years and is supported by its vast natural gas, gas condensate, as well as significant crude oil reserves. Gazprom notably increased its oil reserves last year by the acquisition of Sibneft (now renamed to Gazprom Neft), one of the largest oil companies in Russia. Gazprom’s processing and refining facilities include those installed at its gas production plants as well as technologically advanced oil refining and petrochemical facilities. Gazprom’s transportation and storage of natural gas is performed through its Unified Gas Supply System, the world’s largest high-pressure trunk pipeline complex. Gazprom’s marketing strategy is aimed at participation in the whole value chain to capture attractive margins in the trading and distribution segments of the energy business. In addition, and pursuing the company’s strategic target to become a global energy company, Gazprom is diversifying its activities into electricity power generation and plans to implement projects involving the production of liquefied natural gas and synthetic liquid fuels.
Gazprom’s celebration marks the commemoration of 10 years of growth in the global capital markets. In 1996, the company’s ADRs were listed on the Main Market on the London Stock Exchange. Gazprom was the first Russian issuer to be listed on the Exchange. Since then, the ADR market for Gazprom has developed dramatically, with the price rising sevenfold in part as the result of the liberalisation of trading on Gazprom’s share market. Today, Gazprom has a completely fungible Level I ADR Program, which provides for the conversion of Gazprom shares into ADRs and vice versa. ADRs for Gazprom’s shares issued in 1996 pursuant to the private placement were automatically converted into Level I ADRs and remain listed on the London Stock Exchange. The maximum volume of shares subject to ADRs may not exceed 35% of Gazprom’s charter capital.
Andrey Kruglov, the Deputy Chairman of Gazprom, said:
“We are delighted to be listed on this very respectable and one of the most high profile stock exchanges in the world. The past decade has shown a very high level of effective cooperation between Gazprom and the London Stock Exchange. Being listed on the London Stock Exchange we thus remain devoted to high standards of corporate governance and information disclosure to the benefit of our shareholders.”