Company ’ s History

2. Company’sHistory The “Specialized Administration No. 2” has been formed on the basis of special section No. 7 SA-5 according to the order No. 150 of April 04, 1971 of Ministry of Gas Industry of the USSR. It was a branch of the Welding and Assembly Group of “Glavgasspetsmontazh” association of the Ministry of Gas Industry of the USSR. In 1973 SA No. 2, as part of the Welding and Assembly Group was transferred to the “Glavzapadtruboprovodstroy” association of the Ministry of Construction of Oil and Gas Industry of the USSR, and since 1979 – to the “Glavtruboprovodstroy” of the same ministry. In 2011 our enterprise celebrated its 40th anniversary.

3. Company’sHistory The SA No. 2 was engaged in construction of almost all major main pipelines in Russia, neighboring and lots of other countries. We have been involved in construction of the following main gas pipelines: “Shatlyk – Khiva”, “SRTO – Ural”, “Middle Asia – Center”, “Urengoy — Western Borders”, “Urengoy – the Center”, “Urengoy – Minsk – Ivatsevitchi”, the Ring Gas Pipeline of Moscow Region, “Soyuz”, “Tula – Torzhok”, “Jamburg – Europe”; main oil pipelines: “Pavlodar – Chimkent” and “Holmogory – Klin”. The SA No. 2 has been working on development of Mangyshlakskoye, Lyantorskoye and Orekhovo-Yarmakovskoye oil fields.

4. Company’sHistory On July 1, 2002 the “Specialized Administration No. 2” has merged with the Joint Stock Company “Specialized Administration No. 3” (the city of Stchyolkovo of Moscow Region). “Specialized Administration No. 3” was founded in 1959 within the structure of the Glavgaz Trust of the USSR. The Specialized Administration No. 3 has built the largest in Europe Kasimovskoye underground gas storage facility, Uvyazovskoye underground gas storage facility, lots of other industrial objects. From October 1, 2005 our company is named the Open Joint Stock Company “Specialized Administration No. 2”.

5. SANo. 2 Today Today the Open Joint Stock Company “Specialized Administration No. 2” is the enterprise, capable to accomplish any projects in the field of construction of the oil and gas industry facilities. The SA No. 2 performs full cycle of professional works in construction, reconstruction and rebuilding of main pipelines, underground gas storages and pump stations. The Company unites more than 2500 highly skilled professionals. We are proud and happy to acknowledge that for the 37 years of successful operation we have build perfect professional team. The Company possesses own and all the relevant and required machines, mechanisms, tools and equipment to accomplish the full cycle of main and auxiliary works in the field of construction and rebuilding of main pipelines, underground and on-ground facilities of oil and gas industry.

6. SANo. 2 Today • Basic machines and equipment: • Pipe layers (119 nits) (Komatsu D355C, САТ 587R, CAT 594, САТ-583R (T), Fiat Allis FP-40) • Bulldozers (85 units) Komatsu D355A, D58, САТ D9Н, САТ D9R, САТ D8N, САТ D6, САТ D5, САТ D4 • Excavators (131 units) Komatsu РС340, САТ 325, САТ 428, Hitachi ЕХ450, ЕХ400, ZХ-330LC • Pipeline re-insulating machines (3 units) pipe D 720÷1420 • Trenchless pipe fitters (2 units)“Olymp” D 1020÷1420 • Pipe bending machines (4 units) CRC EVAНS, SUPERIOR D1020÷1220 • Electric power stations (96 units) MOSA GЕ-155, GE-75, GECO-130000, GEP 88-1 • Electric welders and welding mashines (86 units) Komatsu D41 (D65), САТ D6, MOSA DSP 2х400 • Construction vehicles fleet incorporates more than 500 machines, including: • truck cranes (both domestic and imported) (21 units) • truck bowsers (19 units) • damp trucks and flat-bad trucks (96 units) • pipe carriers (30 units) • buses and amenity modules (73 units)

7. SANo. 2 Today The Joint Stock Company “Specialized Administration No.2” possesses all the machines and mechanisms required for effective construction: truck bases concrete misers, skidding machines, drilling machines, compression fillers, mobile repair facilities, various vans, road and other special machines. To deliver heavy construction equipment to construction sites we have our own fleet of truck tractors with various trailers and platforms.

8. SANo. 2 Today SA No. 2 has four production facilities: in Lvovo village of Podols Region, in Telebukino village of Kasimovskiy Region of Ryazan Region, in Mstikhino village of Kaluzhskaya Region. All the above facilities are equipped with garages, repair workshops, warehouses and all other proper auxiliary premises and equipment. On bases in settlements Mstihino and Telebukino in addition are available concrete and asphalt factories. The main office of Joint-Stock Company «Specialized Administration No.2» is not far from v. Lvovo.

9. SANo. 2 Today • Key customers of the «Special Administraton No.2» are the subsidiary companies of the «Gazprom». • In 2012 work was carried out for the following organizations: • «Gazprom invest the South» • «Gazprom PHG» • «GasEnergoServis» • «Neftegaskomplektmontaj» • «Stroigazmontaj» • «Centrgaz» • «Centrenergogaz Gazprom» • «Gazprom Centrremont»

10. SANo. 2 Today For the last 7 years financial rates of the company grew almost in 10 times. New steps for strengthening the enterprise are carried out, the project for issue of securities is succeded, offers and recommendation for buying shares of other enterprises are considered and we try to find new opportunities for resource maneuvers and joining Associations and Unions. * * – expected revenue Another primary task of the Company’s management is to the expand and to enhance own assets of the company. We also pay lots of attention to the issues of social security of our employees, recruitment and training of young generation of our team workers.

11. Innovations The use of the most modern and state-of-the-art technologies and highly specialized welding equipment enables the “SA No. 2” to remain immutably competitive player on the market of pipe line and oil and gas storage facilities construction services. The company builds its production and business processes on a basis of researches and studies carried out by the leading international companies and the Russian industrial institutes. We permanently implement the most advanced welding technologies. The majority of all welding operations required on-site in constructing of the pipelines are made by the semi-automatic welding machines. Together with conventional single bar electrodes we widely use the Innershield welding wire with automated feeding. By the extensive use of the semi-automatic welding technologies we ensure our capabilities to weld the entire range of steels with the most advanced welding consumables.

12. Innovations The STT Technology — is the innovative welding method bases on the STT method (surface Tension Transfer). Developed by the Lincoln Electric, the STT process is based on perspective Waveform Control Technology. Quality and stability of the operation are provided by the use of the modern welding current supply units of transformer type: Idealarc DC-400 and the inverter type: Invertec V350-PRO and Invertec STT II. Powerful, reliable and strong sources of welding current are specifically designed for 24-hours-a-day operation, which is extremely important in severe field conditions. Mobile wire feeders LN-27, LN-23Р from Lincoln Electric (USA) provide the maximum universality and transportability. GE155 Generators, universal welding machines (welding + electric power station) DSP 2х400 РS from МОSА (Italy) are used for construction of the underground gas storage facilities. The “SA No. 2” has four own pipe welding workshops, where the main process involved in the turning welding of the pipe sections in the stationary conditions is the welding under the flux layer. This is very efficient process, enabling 24-hors-a-day operation and thus perfect performance and excellent quality of final product.

13. Innovations In order the establish proper welding joints quality control procedures on the main pipelines the “SA No. 2” has established and commissioned its own Field Test Laboratory, staffed with the very high skilled professionals, who have to pass through the obligatory annual certification. The Laboratory is using the most advanced non-destructive control procedures and technologies, working in close cooperation with certification and supervisory authorities and organizations, take part in development of and goes in line with the most recent and innovative solutions in the field of technical diagnostics and non-destructive control in fuel power engineering and oil and gas industries.

14. Innovations • The Laboratory is equipped with the most modern devices and tools: • self-propelled X-ray crawler JME (520-1420), • X-ray machines of the “Ariana-r” type, • B&G300, • Shmel 250, • ultrasonic defectoscopes “iSonic”, • Krautkramer, • UDZ-103, • Peleng, • gamma-defectoscopes like “Gammaread 192/120”, • machines for instant drying of the Structurix X-ray film, • devices for verification of the evenness of insulation Buckles 2-40, • equipment for the insulation damages detection, • the Laboratory has 6 well Gamma flaw detectors storage facility, • 14 specialized cross-country vehicles, • 6 field labs.

15. Social Policy One of our major priorities is to take care of our employees. All the employees joining our team can feel reliable social security and thus acquire confidence in their future. The Company put lots of effort to provide them with stable employment, deserved salaries and pensions. In full compliance with current legislation the SA No. 2 provides all the employees with relevant and adequate healthy and safe working conditions, implements modern labor safety arrangements, maintains proper sanitary and hygienic standards to prevent any professional occupation diseases. In April, 2005 under the initiative of the management of the Company the service of public health has been organized, where under the guidance of the doctor highly skilled nurses do their best to take medical care of our employees. Five stationary medical offices of pre-mission survey of the drivers and for rendering of the pre-medical treatment, as well as several mobile medical aid stations on all new construction sites are permanently available for our personnel. All medical offices are equipped with the necessary medical tools and instruments, and with regularly updatable stock of medicines.

16. Social Policy Stationary and out-patient treatment of the workers of the Specialized Administration No. 2 is being financed under the contract of voluntary medical insurance (DMS) included into the obligatory social package for all regular employees. Medical aid is rendered in very professional and versatile treatment-and-prophylactic establishments of Moscow, Moscow Region and other regions. Our corporate medical program includes vaccination against flu, carrying out of planned medical examinations of the employees, prophylactic medical examination of technical staff with participation of the experts in specific fields of medicine. The Company is financing all the expenses in connection with feeding of the employees during the working hours. To provide the employees with high quality and at time food in April 2006 the catering service has been organized in the Company.

17. Partners • Lots of the modern achievements of the Specialized Administration No. 2 have been attained independently, through our own affairs and our everyday hard work, while lots of other things could not be possible without our partners: • “Sberbank of Russia”, • “Sogas”, • VNIIGAZ • “Foton-K”, • “Burvod”, • “RussianGerman Leasing Company”, • “Mosnefteprodukt”, • “Berkut”, • “Gasinkom”, • “KEMP Svarka” • and others

18. Contact Us Legal address: 142100, Podolsk, Moscow region, Lenin Avenue, 144 Postal address: 142160, Moscow, Voronovovillage, PO Box #7 Actual address: 142160, Moscow, 66th km Moscow-Jaroslavl highway (Kaluzhskoe highway), not far from Lvovo village Phone/ Fax: 8 (495) 840-89-82 Email: mail@cy-2.ru Sait: www.cy-2.ru, www.su-2.su