Oil & Gas: Gazprom, Kyrgyzstan discuss broader cooperation


(Image courtesy of Gazprom: Working meeting between Alexey Miller, Chairman of the Company's Management Committee and Almazbek Atambayev, President of the Kyrgyz Republic.)

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

The parties addressed the status of cooperation in the oil and gas sector, particularly the prospects for joint activities in hydrocarbon exploration and production, wholesale and retail energy market development, as well as natural gas transmission and distribution in the Kyrgyz Republic.

Special attention was paid to Gazprom's acquisition of a 100 per cent stake in Kyrgyzgaz. It was noted that Gazprom's activities in the Republic across the whole production chain from hydrocarbon exploration to distribution as well as investments in the development of energy facilities would bring the Kyrgyz fuel and energy sector to a fundamentally new level.

The proven natural gas reserves in the Kyrgyz Republic are estimated at 6 billion cubic meters. The development of gas fields is hindered by the geologic peculiarities and insufficiently developed infrastructure. The domestic production of natural gas in the Republic averages 20 million cubic meters per annum. Gas consumption makes up some 300 million cubic meters per annum, 90 per cent of which is imported from Uzbekistan and Kazakhstan.

Kyrgyzgaz is the company dealing with natural gas acquisition, transmission and distribution to Kyrgyz consumers.

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

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

In May 2007 Gazprom and the Kyrgyz Republic Government signed the Agreement on the common principles for the geological survey of subsurface resources. Under the Agreement, Gazprom obtained two subsurface use licenses for the Kugart and Eastern Mailu-Suu IV blocks.

In February 2011 the Gazpromneft-Aero Kyrgyzstan joint venture was set up by Gazprom Neft and the Kyrgyz Republic Government. Gazpromneft-Aero Kyrgyzstan supplies jet fuel and refuels civil aircrafts of most airlines in Kyrgyzstan.

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

In July 2013 the Kyrgyz Republic Government and the Russian Federation Government entered into the Cooperation Agreement in the area of natural gas transmission, distribution and sales in the Kyrgyz Republic. Under the Agreement, Gazprom purchases a 100 per cent stake in Kyrgyzgaz. In December 2013 the Parliament and the President of the Kyrgyz Republic ratified the Agreement.

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