Led by Alexey Miller, Chairman of the Gazprom Management Committee, the Company's delegation paid a working visit to the Kyrgyz Republic. As part of the visit Alexey Miller met with Almazbek Atambayev, Prime Minister of the Kyrgyz Republic.

The parties discussed the issues of cooperation deepening between Gazprom and the Kyrgyz Republic in the oil and gas sector. Special attention was paid to potential interaction in hydrocarbons exploration and production, the wholesale and retail energy markets development in Kyrgyzstan as well as natural gas transportation and distribution in the Republic.

The agreement was reached to establish Gazprom Group's representative office in the Kyrgyz Republic.

Besides, the meeting participants considered Gazprom's possible participation in privatization of energy facilities in the Kyrgyz 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 30 million cubic meters per annum. Gas consumption – around 750 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 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 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.