Led by Alexander Medvedev, Deputy Chairman of the Management Committee, a Gazprom delegation paid a working visit to the Republic of Uzbekistan today. As part of the visit, Alexander Medvedev met with Ergash Shaismatov, Deputy Prime Minister of Uzbekistan and Ulugbek Nazarov, Chairman of the Board of Uzbekneftegaz.

According to the negotiation results, a contract for Uzbek gas purchase and sale was inked between Gazprom export and Uztransgaz for 2010 in the amount of up to 4.25 billion cubic meters. Pursuant to the agreements reached, the price formula for the natural gas supplied from Uzbekistan will meet the European gas market conditions. Taking into account the contracts signed earlier, Gazprom’s portfolio will additionally receive 15.5 billion cubic meters of Uzbek gas in 2010.

“Having taken constructive positions, the parties agreed to enhance the level of mutually-beneficial cooperation and to start preparation of a long-term contract,” said Alexander Medvedev.

Background:

The Agreement of Strategic Cooperation in the gas industry between Uzbekneftegaz and Gazprom was signed on December 17, 2002. In particular, the Agreement provides for long-term procurement of Uzbek gas in 2003–2012, Gazprom’s participation in natural gas production projects in the Republic of Uzbekistan on the PSA terms, as well as cooperation in the field of Uzbekistan’s gas transmission infrastructure development and Central Asian gas transmission through the Republic.

On February 5, 2005 Gazprom and Uztransgaz (a sub-holding company of Uzbekneftegaz) signed a medium-term Agreement to transport natural gas through Uzbekistan from 2006 to 2010. The Agreement was made for the purpose of Central Asian gas transmission, primarily Turkmen gas, with the use of the Central Asia – Center and Bukhara – Urals gas transmission systems running across the Republic of Uzbekistan.

On January 1, 2009 Gazprom coordinated the terms and conditions for natural gas supply from Uzbekistan in 2009 and signed an addendum to the contract for Uzbek gas supply providing for the price formula based on average European gas prices.

On December 11, 2009 the addendum to the contract for natural gas transit across Uzbekistan in 2010 between Gazprom and Uztransgaz, and the major terms and conditions for Uzbek gas supply in 2010 were inked by Gazprom and Uzbekneftegaz.