The Gazprom headquarters hosted today a working meeting between Alexey Miller, Chairman of the Company's Management Committee and Almazbek Atambayev, President of the Kyrgyz Republic.

The parties discussed the current state and prospects for future collaboration in the oil and gas sector including the interaction in hydrocarbons exploration and production as well as the energy market development.

The meeting discussed Gazprom's possible participation in privatization of Kyrgyz oil and gas facilities. Special consideration was given to the Company's entry in the shareholding structure of Kyrgyzgaz.

Background

The proven natural gas reserves in the Kyrgyz Republic are estimated at 6 billion cubic meters. Development of gas fields is hindered by the geologic peculiarities and insufficiently developed infrastructure. The domestic production of natural gas in the Republic averages 30 million cubic meters per annum. Gas consumption makes up some 700 million cubic meters per annum 95 per cent of which is imported from Uzbekistan.

In May 2003 Gazprom and the Kyrgyz Republic Government entered into the long-term Agreement of Cooperation in the gas industry for a period of 25 years.

In May 2007 Gazprom obtained two subsurface use licenses for the Kugart and Eastern Mailu-Suu IV areas in the Kyrgyz Republic. Geological exploration of the areas is carried out by Gazprom International – Gazprom's subsidiary company.

In 2006 Gazprom Neft  incorporated the subsidiary company Gazprom Neft Asia, in 2011 the joint venture Gazpromneft-Aero-Kyrgyzstan, a jet fuel supplier, was set up in cooperation with the Kyrgyz Republic Government. Gazprom Neft Asia is the largest operator in Kyrgyzstan's fuel market and owns 112 gas filling stations, 8 oil tank farms, 2 LPG bases.

In October 2008 Gazprom and the Kyrgyz Republic Government signed the Memorandum of Understanding to develop cooperation within the privatization of a part of the state-owned stake in Kyrgyzgaz. The Memorandum is targeted at fostering mutually beneficial long-term cooperation in gas transportation and distribution in Kyrgyzstan.

In September 2011 Gazprom and the Kyrgyz Republic Government signed a protocol to boost cooperation in the oil and gas sector.