Russ Oil-Gas

October 09, 2008 - AFX News Limited - Russia's Gazprom signed a memorandum of understanding (MOU) on Thursday with Kyrgyzstan which will help it buy a stake in Kyrgyz state-owned gas company Kyrgyzgaz, the state gas export monopoly said on Thursday. Gazprom said in a statement the memorandum was signed in Bishkek as part of Russia's President Dmitry Medvedev's visit to Kyrgyzstan and allowed the parties to work out principles of Gazprom's participation in the privatization of Kyrgyzgaz. The Kyrgyz government invited Gazprom to take part in the planned privatisation of Kyrgyzgaz and another state-owned company, Kyrgyzneftegaz, in February this year. Kyrgyzstan, more known for its metals reserves, remains a small player on the Central Asian energy market, which is dominated by oil-rich Kazakhstan and gas exporter Turkmenistan. It produces about 70,000 tonnes of oil and 30 million cubic meters of gas a year, but the government says there are sizeable unexplored hydrocarbon reserves. The country's proved reserves of natural gas are estimated at 6 billion cubic meters. By 2010, Kyrgyzstan is forecast to produce 40 million cubic meters of gas a year, Gazprom said.