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MOLDOVA


CAPITAL: Chisinau

MONETARY UNIT: Leu

REFINING CAPACITY: 0

OIL PRODUCTION: 0

OIL RESERVES: Undetermined

GAS RESERVES: Undetermined

Concern MoldovaGaz JSC, the Moldovan gas transmission and distribution company, let contract to Redeco Energy Inc., Calgary, for supply of natural gas to be produced under a concession covering all of Moldova.

The contract provided for an annually fixed price based on the current market price less a 5% discount. The contract would be valid for the rest of the concession agreement and be operated by Redeco`s 50% partner Costilla Energy Inc., Midland, Tex.

Moldova said it would pay a $215 million debt to Russian gas monopoly Gazprom by issuing $100 million in bonds and establishing a 50-50 joint venture with Gazprom, which would include all Moldova`s gas assets.

Gazprom had cut supplies to the republic by half and had threatened to end them if debts were not paid.

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