Strategy

As a global energy company, Gazprom follows a development strategy aimed at building the entire value chain from extraction to sale of hydrocarbons in new markets by using production facilities outside Russia.

As part of this strategy, Gazprom conducts geological exploration in the Kugart and Eastern Mailu-Suu IV areas of Kyrgyzstan. The Company also implements the General Scheme of Gas Supply to and Gasification of the Kyrgyz Republic.

Gazprom Group’s hydrocarbon exploration and production activities abroad

Gazprom Group’s hydrocarbon exploration and production activities abroad

Cooperation

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

In 2006, Gazprom Neft set up Gazprom Neft Asia, Kyrgyzstan-based subsidiary company, the largest operator in the Kyrgyz fuel market holding over 70 per cent of its share. The company's assets include 108 filling stations, 8 oil tank farms, and 2 LNG tank farms.

In 2008, Gazprom obtained exploratory licenses for the Kugart and Eastern Mailu-Suu IV areas.

Alexey Miller, Chairman of Gazprom Management Committee, receiving exploratory licenses for Kugart and Eastern Mailu-Suu IV areas from Igor Chudinov, Prime Minister of Kyrgyz Republic

Alexey Miller, Chairman of Gazprom Management Committee, receiving exploratory licenses for Kugart and Eastern Mailu-Suu IV areas from Igor Chudinov, Prime Minister of Kyrgyz Republic

In 2011, Gazprom Neft and the Kyrgyz Government established a joint venture company, Gazpromneft-Aero Kyrgyzstan, to deliver jet fuel and refuel civil aircrafts of most airlines operating in the Kyrgyz Republic.

In 2013, the Kyrgyz and Russian Governments inked the Cooperation Agreement in the field of natural gas transmission, distribution and sales in the Kyrgyz Republic. Under this Agreement, Gazprom acquired a 100 per cent stake in Kyrgyzgaz.

In 2014, Gazprom and Kyrgyzgaz signed the Sales and Purchase Agreement for a 100 per cent stake in KyrgyzgazProm (renamed as Gazprom Kyrgyzstan), a wholly-owned subsidiary of Kyrgyzgaz. Gazprom Kyrgyzstan has exclusive rights to import natural gas to the Kyrgyz Republic and owns the national gas transmission and distribution systems.

Under the General Scheme of Gas Supply to and Gasification of the Kyrgyz Republic until 2030 developed by Gazprom, the Company undertakes large-scale efforts to reconstruct and upgrade the gas transmission, underground gas storage and gas distribution facilities based in Kyrgyzstan.

Signing of Sales and Purchase Agreement for 100 per cent stake in Gazprom Kyrgyzstan

Signing of Sales and Purchase Agreement for 100 per cent stake in Gazprom Kyrgyzstan

Reserves

Kyrgyzstan's proven natural gas reserves are estimated at 6 billion cubic meters.

Implementation of projects

The Kugart prospect covers around 60 square kilometers. Its main potentially productive hydrocarbon formations are located at a depth of 1,000–2,800 meters below the surface. The prospect may contain over 17 billion cubic meters of gas and about 4 million tons of oil and gas condensate.

The Mailu-Suu IV prospect has a total area of around 20 square kilometers. Its main potentially productive hydrocarbon formations lie at a depth of up to 800 meters.

Exploration areas in Kyrgyzstan

Exploration areas in Kyrgyzstan

In 2016, the exploratory licenses were renewed until October 2019.

Also that year, seismic and gravity surveys were conducted in the Kugart area and the Eastern Mailu-Suu IV block. Both projects are operated by Gazprom EP International B.V.

Welding first joint of final section of Phase II at Bukhara Gas-Bearing Province – Tashkent – Bishkek – Almaty gas main

Welding first joint of final section of Phase II at Bukhara Gas-Bearing Province – Tashkent – Bishkek – Almaty gas main

In 2015, the first joint of the final section of Phase II at the Bukhara Gas-Bearing Province – Tashkent – Bishkek – Almaty gas main was welded. In 2016, the section became operational. As a result, the gas pipeline’s annual throughput at the Chuy custody transfer point in the Kyrgyz territory was almost doubled, reaching 3.9 billion cubic meters of gas. Works were carried out by Gazprom under the General Scheme of Gas Supply to and Gasification of the Kyrgyz Republic until 2030.

Social projects

In 2015, sports and recreation centers built under the Gazprom for Children program opened their doors in Kara-Suu and Talas.

Sports and recreation center in Kara-Suu

Sports and recreation center in Kara-Suu

In 2016, a sports and recreation center, also built as part of the Gazprom for Children program, was opened in Bishkek. The center serves as a training and competition venue for futsal, basketball, volleyball, handball, court tennis, and various martial arts.

Sports and recreation center in Bishkek

Sports and recreation center in Bishkek

In 2017, Bishkek hosted a ceremony for the laying of a capsule at a school construction site within the Gazprom for Children program. Designed for over 950 students, the school will have computer classrooms, a multimedia library, a lab, and a number of gyms and swimming pools.

Almazbek Atambayev and Alexey Miller. Photo by www.president.kg

Almazbek Atambayev and Alexey Miller. Photo by www.president.kg

Model of school building. Photo by www.president.kg

Model of school building. Photo by www.president.kg