Today, the Gazprom Headquarters has hosted a working meeting of Alexey Miller, Chairman of the Gazprom Management Committee, Ednan Karabaev, Minister of International Relations of the Republic of Kyrgyzstan, Igor Chudinov, Minister of Industry, Energy and Fuel Resources of the Republic of Kyrgyzstan.

The partied discussed the progress with the Plan of paramount activities execution within the long-term Agreement of cooperation in the gas industry between Gazprom and the Republic of Kyrgyzstan.

The parties achieved an accord on further cooperation development in the sector of strategic project including natural gas prospecting and production projects. The meeting pointed out that the program preparation for geological activities in the Republic is planned to be completed in December 2007. As a result, the parties will decide to set up a Russian-Kyrgyz joint venture in the oil and gas sector.

The meeting examined the prospects of privatizing the gas infrastructure facilities owned by the Kyrgyz Republic.

Reference:

Gazprom and the Government of the Kyrgyz Republic signed the 25-year Agreement of cooperation in the gas industry on 16 May 2003.

In particular, the Agreement stipulates:

• Exploration and development of hydrocarbon fields in the Kyrgyz Republic;
• Upgrading, construction and operation of gas mains and other gas facilities of the Kyrgyz gas complex;
• Gas transmission and delivery while implementing joint projects.

In January 2004 Gazprom and the Kyrgyz Republic approved a Plan of paramount activities of Gazprom and the Government of the Kyrgyz Republic aimed at the above mentioned Agreement implementation. The Plan determines the scope and timetable of joint works and types of cooperation when upgrading, constructing and operating gas transportation facilities; jointly exploring and developing fields and rendering various services to the Kyrgyz side.

In May 2007 Gazprom and the Kyrgyz Republic Government signed the Agreement on major principles of geological survey provision.

The document stipulates that Russian side will provide geological survey of the agreed blocks located in the territory of the Kyrgyz Republic. If hydrocarbon reserves are found the Russian side will provide technical and economic assessment for hydrocarbon exploration, furthermore the parties will make a decision to set up a joint venture for the field development.

Kyrgyzia’s proved natural gas reserves are estimated at 6 bcm. The Republic faces certain difficulties in developing its gas fields due to their geological complexity and an insufficiently developed gas infrastructure. Kyrgyzia annually produces some 30 mln cu m of natural gas and plans to build its annual production up to 40 mln cu m in 2010.