Russian gas monopoly OAO Gazprom (GAZP.RS) has received two licenses for natural gas exploration in southern Kyrgyzstan and will invest up to $300 million in these projects, Interfax news agency reported Wednesday citing the Kyrgyz prime minister and Gazprom's chief executive.
"In accordance with the agreement of May 2, 2007 between Gazprom and Kyrgyzstan on geological exploration work in Kyrgyzstan's south, we are providing (Gazprom with) licenses for two fields," Kyrgyz Prime Minister Igor Chudinov was quoted by Interfax as saying at a meeting with Gazprom CEO Alexei Miller.
Miller said annual natural gas production in Kyrgyzstan could total 750 million cubic meters a year, Interfax reported. Chudinov said that Gazprom's involvement in the country's natural-gas production could cover Kyrgyzstan's annual natural gas demand of 300 million cubic meters.
This Central Asian nation relies on neighboring Uzbekistan for natural gas supplies.
Miller said that the Russian energy company planned to invest "up to $300 million in Kyrgyzstan", Interfax reported.
Miller said Gazprom was also interested in acquiring state-owned Kyrgyzgaz and Kyrgyzneftegaz energy companies and would present its plan for development of these two companies if chosen as a strategic partner in Kyrgyzstan's energy sector, according to Interfax.
Privatization of the energy sector has yet to be approved by parliament, Chudinov said.