The Gazprom Headquarters hosted today a working meeting between Alexey Miller, Head of the Gazprom Management Committee and Igor Chudinov, Prime Minister of the Republic of Kyrgyzstan.

The parties discussed the progress with the implementation of the Stepwise Program for geological survey of the subsurface resources in the Kugart and Mailu-Suu IV areas located in Kyrgyzstan.

Additionally, the parties touched upon the possibility for the implementation of joint projects in the energy sector.

Summing up the meeting results the parties pointed out the constructive character of cooperation between Gazprom and Kyrgyzstan and expressed hope for the further strengthening of the bilateral relations.

Background:

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 Kyrgyz Republic;
• upgrading, construction and operation of gas trunklines and other gas industry infrastructure facilities in the Kyrgyz Republic;
• gas transportation and supply within the implementation of joint projects.

In January 2004, Gazprom and the Kyrgyz Republic approved the Plan of paramount activities for the execution of the said Agreement.

In January 2006, Gazprom and the Government of the Kyrgyz Republic signed the 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 the Agreement on common principles for the geological survey of subsurface resources in order to lay the cornerstone (form a resource base) for the joint venture operation.

In February 2008, Gazprom was granted licenses for geological survey of the subsurface resources in the promising oil and gas areas of Kugart and Eastern Mailu-Suu IV. In July 2008, Gazprom and the Government of the Kyrgyz Republic approved the Stepwise Program for geological survey of the subsurface resource in the said areas.

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 totals some 30 mcm per annum. The forecasted production will reach 40 mcm by 2010.