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PM gives 5 days to resolve problems of Kyrgyzneftegaz

Prime Minister Sapar Isakov instructed within five days to make proposals for improving the financial and economic situation of Kyrgyzneftegaz OJSC. Press service of the head of the Cabinet informed.

It is noted that the day before Sapar Isakov held a working meeting on the situation in Kyrgyzneftegaz OJSC. The Chairman of the company’s Board Rashit Bostonov told that the situation at the enterprise had been complicated for several years.

«The problems are related to the low efficiency of OJSC management, the unstable sales of products, the lack of stock growth, the overproduction of fuel oil in the lack of demand and the decline in the production of petroleum products at the refinery in Jalal-Abad,» the Chairman of Kyrgyzneftegaz said.

The processing of raw materials is carried out by a subsidiary company of Kyrgyzneftegaz, Kyrgyz Petroleum Company CJSC. But it produces gasoline and diesel fuel that does not meet the requirements of the Eurasian Economic Union.

«In order the plant’s products to meet the requirements, it is necessary to modernize it. This is impossible without investments. The company produces oil and gas in small quantities. In 2016, 94,400 tons of oil and 28.92 million cubic meters of natural gas were extracted. Such a volume does not allow providing the settlements in the southern regions of the republic with the gas. Due to the high cost of production because of obsolete technologies, there is a risk of suspension of crude oil processing and sale of oil products,» Rashit Bostonov said, and suggested attracting investors to solve problems.

Sapar Isakov instructed to study the situation and within five days to submit proposals for solving existing problems at the enterprise.