Gazprom delegation visits Kyrgyz Republic
A Gazprom delegation today paid a visit to the Kyrgyz Republic. Alexey Miller, Chairman of the Gazprom Management Committee held talks with Kurmanbek Bakiev, President of the Kyrgyz Republic and Igor Chudinov, Prime Minister of the Kyrgyz Republic. At a solemn ceremony conducted as part of the visit Gazprom was awarded subsoil use licenses for oil and gas prospects in Kyrgyzstan.
The meetings also addressed the possibilities for Gazprom to participate in the privatization of Kyrgyzstan’s natural gas and oil infrastructure.
The parties expressed their interest in further developing cooperation in the hydrocarbon exploration and production sector as well as in upgrading and utilizing underground gas storage facilities in the Kyrgyz Republic.
Alexey Miller noted: “Gazprom intends to become a strategic investor in the Kyrgyz oil and gas sector and to bring forward a long-term investment program to be targeted at providing the Republic with gas from its own resources”.
In May 2003, Gazprom and the Government of the Kyrgyz Republic signed a long-term Agreement of Cooperation in the gas industry for the term of 25 years in order to establish a legal framework for strategic cooperation.
In particular, the Agreement provides for:
- exploration; development and operation of hydrocarbon fields in the territory of the Kyrgyz Republic;
- upgrading, construction and operation of gas trunklines and other gas industry infrastructure facilities in the Kyrgyz Republic;
- gas transportation and supply for the implementation of joint projects.
In January 2006, Gazprom and the Government of the Kyrgyz Republic signed a Memorandum of Intent to establish a joint Russian-Kyrgyz venture in the oil and gas industry.
In May 2007, Gazprom and the Government of the Kyrgyz Republic signed an Agreement on the common principles for the geologic survey of subsoil resources in order to lay the cornerstone (form a resource base) for the joint venture operation.
The proven reserves of natural gas in Kyrgyzia are estimated at 6 bcm. The development of natural gas fields is hindered by the geologic peculiarities and insufficiently developed infrastructure. Domestic production of natural gas in the Republic averages 30 mln cu m per annum. Gas consumption – around 750 mln cu m of gas per annum.
Zarubezhneftegaz, a Gazprom subsidiary, is geological exploration operator in Kyrgyzstan.
Gazprom Neft, a Gazprom subsidiary, owns in the Kyrgyz Republic a network of 77 filling stations, 8 oil depots and 2 liquefied household gas depots as well as rents a further 4 oil depots. The assets are managed the Gazprom neft Asia subsidiary.