Gazprom to Buy Majority State in Kyrgyzstan's Gas Company

Gazprom, Russia's state-backed energy giant, could buy three-quarters of Kyrgystan's national gas producer for one dollar, reports say.

Russia's state-run news agency RIA Novosti reports that Gazprom is examining an offer to buy 75% of Kyrgyzgaz for $1 to help the company settle debts and work toward energy diversity. "The deal to buy Kyrgyzgas would allow Gazprom to start prospecting and developing ... two gas deposits," the report, also carried by UPI and other sources,stated.

Other agencies reported the deal was certain, and would relieve supply worries in the mountainous nation of 5 million, which also borders China.

AP quoted Kyrgyzgaz general director Turgunbek Kulmurzayev saying the sale of the company to the Russian gas giant would be completed by April 1.

At a meeting in Moscow last week, Gazprom CEO Alexei Miller discussed a possible deal with Kyrgyz President Almazbek Atambayev. In a statement, Gazprom said it was interested in future prospects in the oil and natural gas sector in the former Soviet republic.

"The meeting discussed Gazprom's possible participation in privatization of Kyrgyz oil and gas facilities," Gazprom said. "Special consideration was given to the company's entry in the shareholding structure of [natural gas company] Kyrgyzgaz."

 Gazprom said it estimated the proven natural gas reserves in the republic at around 211 billion cubic feet, but said development is hindered by the lack of infrastructure and "geological peculiarities".