Headed by Alexey Miller, Gazprom’s Management Committee Chairman, Gazprom’s delegation completed its working visit to Uzbekistan.

In the course of the visit Alexey Miller met with Islam Karimov, President of the Republic of Uzbekistan, Utkir Sultanov, Uzbek Deputy Premier and Abdusalom Azizov, Chairman of the Management Board of the National Holding Company Uzbekneftegaz.

The parties addressed issues of further cooperation deepening between Russia and Uzbekistan in the energy sector, placing a focus on stronger business ties with Uzbek oil and gas companies, supply of Uzbek natural gas, reconstruction of the Central Asia – Center (CAC) gas transmission network and new gas extraction, transmission & marketing projects.

The parties signed documents setting a purchase price of Uzbek natural gas and a rate of gas transit across Uzbekistan.

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Uzbekistan’s total natural gas resources exceed 6.25 tcm, including 1.62 tcm in commercial reserves. At present the Republic extracts 55 bcm of gas per year, including 5 bcm exported to Kazakhstan, Kyrgyzia and Tajikistan. With first imports launched in May 2003, over 2005 Russia acquired some 8 bcm of Uzbek gas and 9 bcm is slated for 2006.

The Uzbekneftegaz National Holding Company and Gazprom signed an Agreement on strategic cooperation on 17 December 2002. In particular, the Agreement stipulates long-term procurement of Uzbek gas between 2003 and 2012, Gazprom’s involvement in natural gas production in Uzbekistan under the Production Sharing Agreement terms as well as cooperation in developing Uzbekistan’s gas transmission infrastructure and channeling Central Asian gas via the Republican territory. Cooperation under the PSA terms (effective from 14 April 2004) while renewing gas production from the Sakhpakhty field is a pilot joint project in the gas extraction sector. Said project stipulates 0.5 bcm of natural gas being extracted on an annual basis.

On 5 February 2005 Gazprom and Joint-Stock Company Uztransgaz sealed a midterm Agreement on natural gas transmission via the Republic of Uzbekistan over 2006 to 2010, pursuing the objective of transporting Central Asian natural gas, primarily of Turkmen origins, by the Central Asia – Center (CAC) and Bukhara – Ural gas transmission networks running through Uzbekistan.