OREANDA-NEWS. December 21, 2011. The Gazprom headquarters hosted today a working meeting between Alexey Miller, Chairman of the Company’s Management Committee and Almazbek Atambayev, President of the Kyrgyz Republic.
The parties discussed the issues of bilateral cooperation deepening in the energy sector. A focus was placed on the prospects of the joint projects for hydrocarbons exploration and production, energy market development in Kyrgyzstan as well as natural gas transmission and marketing in the Republic.
The meeting participants also discussed the potential participation of Gazprom in privatization of oil and gas facilities of the Kyrgyz Republic, particularly an equity stake in Kyrgyzgaz.
After the meeting, Alexey Miller and Almazbek Atambayev expressed a unanimous opinion that the Russian-Kyrgyz relationship in the energy sector had a great potential for development. The implementation of joint projects in Kyrgyzstan would make a significant contribution to the economic development of the Republic.
Background

The proven natural gas reserves in the Kyrgyz Republic are estimated at 6 billion cubic meters. Development of gas fields is hindered by the geologic peculiarities and insufficiently developed infrastructure. The domestic production of natural gas in the Republic averages 22 million cubic meters per annum. Gas consumption – around 300 million cubic meters per annum.

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

In January 2006 Gazprom and the Kyrgyz Republic Government signed the Memorandum of Intent to establish a joint Russian-Kyrgyz venture in the oil and gas industry. In May 2007 Gazprom and the Kyrgyz Republic Government signed the Agreement on the common principles for the geological survey of subsurface resources in order to lay the cornerstone for the joint venture operation. Under the Agreement Gazprom obtained in 2008 two subsurface use licenses for the Kugart and Eastern Mailu-Suu IV areas over 2008 to 2011.

In 2006 Gazprom neft incorporated the subsidiary company Gazprom neft Asia in Kyrgyzstan. The company is the largest operator in Kyrgyzstan's fuel market and owns 108 gas filling stations.

In October 2008 Gazprom and the Kyrgyz Republic Government signed the Memorandum of Understanding to develop cooperation within the privatization of a part of the state-owned stake in Kyrgyzgaz. The Memorandum is targeted at fostering mutually beneficial long-term cooperation in gas transportation and distribution in Kyrgyzstan.

In February 2011 Gazprom and the Kyrgyz Republic Government signed two protocols to resume and promote the cooperation.

In February 2011 the joint venture Gazpromneft-Aero Kyrgyzstan, a jet fuel supplier, was set up in cooperation with the Kyrgyz Republic Government. Gazpromneft-Aero Kyrgyzstan supplies jet fuel and refuels civil aircrafts of most airlines operating in Kyrgyzstan.

In September 2011 Gazprom and the Kyrgyz Republic Government reached an agreement to activate the cooperation in the oil and gas area.