The Headquarters of Gazprom hosted today a working meeting of Alexey Miller, Chairman of the Company’s Management Committee with Igor Chudinov, Prime Minister of the Kyrgyz Republic and Saparbek Balkibekov, Industry, Energy and Fuel Resources Minister of the Kyrgyz Republic.

The parties addressed issues with regard to the Kyrgyz oil and gas industry development as well as the prospects for Gazprom participation in the country’s energy projects.

The meeting pointed to the positive development dynamics in the bilateral interaction within the frame of the Agreement of Cooperation in the gas industry signed between Gazprom and Kyrgyzia. The parties also approved the course of implementation of the commitments fixed in the Agreement on the common principles for the geologic survey of subsoil resources at oil and gas prospects in Kyrgyzia.

The parties also reached an agreement to further develop cooperation within strategic projects including those related to natural gas exploration and production. The parties emphasized that in the near future Gazprom will launch geologic survey activities in the agreed subsoil areas in Kyrgyzia due to the completion of the geological exploration program preparation. Based on the results of such work, in case hydrocarbon reserves are discovered, the parties will develop a feasibility study for their development, which will become the basis for decision making on the viability of establishing a joint Russian-Kyrgyz venture in the oil and gas industry for the development of discovered fields.

In addition, the parties discussed the privatization prospects for gas infrastructure facilities in Kyrgyzia, as well as the conditions and forms for the participation of Gazprom in such processes.

Reference:

In May 2003 Gazprom and the Government of the Kyrgyz Republic signed a long-term Agreement on cooperation in the gas industry for the term of 25 years in order to establish a legal framework for strategic cooperation.

In particular, the Agreement provides for:

• exploration; development and operation of hydrocarbon fields in the territory of the Kyrgyz Republic;
• upgrading, construction and operation of gas trunklines and other gas industry infrastructure facilities in the Kyrgyz Republic;
• gas transportation and supply for the implementation of joint projects.

In January 2004 a Plan for top-priority joint actions by Gazprom and the Government of the Kyrgyz Republic for the implementation of the above mentioned Agreement was approved.

In January 2006 Gazprom and the Government of the Kyrgyz Republic signed a Memorandum of Intent for the establishment of a joint Russian-Kyrgyz venture in the oil and gas industry.

In May 2007 Gazprom and the Government of the Kyrgyz Republic signed an Agreement on the common principles for the geologic survey of subsoil resources in order to lay the cornerstone (form a resource base) for the joint venture operation.

The proven reserves of natural gas in Kyrgyzia are estimated at 6 bcm. The development of natural gas fields is hindered by the geologic peculiarities and insufficiently developed infrastructure. Domestic production of natural gas in the Republic totals some 30 mln cu m per annum. Production is forecast to reach 40 mln cu m by 2010.