USD 81.80
EUR 95.48
RUB 1.03

State Committee of Industry tells about agreement on Kyrgyzneftegaz

Gazprom PJSC proposed drilling of new production wells, which will increase the volume of gas production to 100 million cubic meters per year and the volume of crude oil refining with the production of 300,000-400,000 tons of oil products annually. The State Committee for Industry, Energy and Subsoil Use of Kyrgyzstan reported.

Proposals on attraction of investments in the modernization of Kyrgyzneftegaz’s branch — Kyrgyz Petroleum Company have been made. Equipment of Kyrgyz Petroleum Company have operated for more than 20 years. In addition, from August 12, 2019, the products manufactured by the plant will not meet the requirements of technical regulations of the Eurasian Economic Union.

To bring the products of Kyrgyz Petroleum Company in line with EEU requirements, it is necessary to carry out a complete reconstruction of the plant with an investment of $ 80-120 million.

«In addition, investments of $ 250-300 million will be required for exploration to increase oil and gas production. Gazprom proposed reconstruction of Kyrgyz Petroleum Company’s refinery, which will allow to produce petroleum products of environmental classes K-4 and K-5. Gas infrastructure development of Batken, Jalal-Abad and Osh regions has been proposed,» the message says.

According to Kyrgyzneftegaz, for development of two or three fields, it is necessary to drill about 800-1,000 wells. It takes 7-10 years and $ 400-500 million. At present, the financial capabilities of the company do not allow sufficient oil and gas exploration, which would allow opening of new fields in the coming years.

The roadmap signed between the Kyrgyz and Russian parties does not include obligations, but intentions to consider investment proposals from the Russian side.

State Committee for Industry, Energy and Subsoil Use

During the state visit of the Russian President Vladimir Putin to Kyrgyzstan, Chairman of the Board of the Russian Gazprom PJSC Alexei Miller and the First Deputy Prime Minister of Kyrgyzstan Kubatbek Boronov signed a roadmap on the participation of Gazprom in the acquisition of property and assets of Kyrgyzneftegaz.