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December 19, 2005

Results of the working meeting between Alexey Miller and Vladimir Shkolnik

Today at Gazprom headquarters Alexey Miller, Chairman, Gazprom Management Committee, held a working meeting with Vladimir Shkolnik, Minister of Energy and Mineral Resources of the Republic of Kazakhstan.

The parties discussed bilateral cooperation in the natural gas industry. Among the issues discussed were Kazakhstan produced gas processing and marketing, and natural gas supplies to Kazakhstan consumers.

Alexey Miller and Vladimir Shkolnik highly praised joint cooperation in gas processing at Orenburgsky gas treatment plant. It was noted that the majority of the issues of establishing a joint venture have been solved, and the parties will complete the negotiations in the nearest future.


The Republic of Kazakhstan’s proved gas reserves are estimated at around 2 trillion cubic meters. Estimated resources of natural gas including reserves in the offshore fields of the Caspian Sea stand at about 8.3 trillion cubic meters.

In recent years the Republic of Kazakhstan produces 11-12 bcm of gas, local consumption is about 5 bcm of gas annually. Production is set to increase to 14 bcm of gas in 2005, and to 40 bcm by 2020, with a possibility of increasing exports of gas.

Russia-Kazakhstan cooperation in the natural gas industry is regulated by the following intergovernmental agreements: “On cooperation and development of fuel and energy industry” of 25 December, 1993 (and annual Protocols to this agreement), “On technical and economic cooperation and integration in petroleum industry” of 25 February 1997, “On cooperation in the natural gas industry” of 28 November, 2001.

In June 2002, Gazprom and the National company KazMunaiGaz established and registered in the Republic of Kazakhstan the KazRosGaz joint venture (an equal partnership) for purchases and marketing of natural gas, and its processing at gas treatment plants in Russia, and other types of businesses.

The bilateral cooperation between Gazprom and Kazakhstan companies include:

· the treatment of gas produced at Karachaganakskoye field at the Orenburgsky gas treatment plant;

· Gazprom’s provision of services in transiting Kazakhstan produced natural gas produced at Tengizskoye field via the Russian territory to the consumers of Transcaucasian states;

· Russia produced natural gas supplies to the consumers in Kostanaiskaya oblast of Kazakhstan;

· Facilitation of transit of Central Asia produced gas via the territory of Kazakhstan in increasing volumes and in accordance with the signed long term agreements.




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