28 Mar 2019 19:34

Gazprom buying oil and gas co in Kyrgyzstan, months after winding down exploration there

BISHKEK. March 28 (Interfax) - Russia's Gazprom , which has established control of Kyrgyzstan's gas sector, now has its sights set on oil.

Just months after calling an end to exploration in the country and relinquishing licenses to the Eastern Mail-IV and Kugart greenfield projects, the Russian company is buying JSC Kyrgyzneftegaz, Kyrgyzstan's biggest oil and gas producer. Gazprom chief Alexei Miller and Kubatbek Boronov, a Kyrgyz first deputy prime minister, signed a road map on Gazprom's involvement in the acquisition of the company's assets on Thursday.

Gazprom said in a statement that the road map set down mutual obligations and a plan of action, with a valuation of the company and financial feasibility study planned.

Gazprom bought the assets of gas producer Kyrgyzgaz in 2014. The Russian company operates in Kyrgyzstan through its wholly owned Gazprom Kyrgyzstan LLC.

JSC Kyrgyzneftegaz produces between 75,000 tonnes and 80,000 tonnes of oil per year. The state owns 85% of its shares. The company operates at 35 small oil and gas fields in the Batken and Jalal-Abad regions of southern Kyrgyzstan.