Kyrgyz Republic
Kyrgyz Embassy , Mission to UNOG
Embassy of the Kyrgyz Republic

Your investment opportunities in Kyrgyzstan

 

    

Total area: 199,900 sq km. Stretching 900 km from east to west and 425 km from north to south, Kyrgyzstan's total landmass is about the size of Switzerland, Belgium, the Netherlands, and Portugal combined. The northernmost part of the country is on the same latitude as Rome, and the southernmost end is on a level with the island of Sicily. The borders of the Republic generally follow natural boundaries - mountain ranges and rivers. Kyrgyzstan borders on Kazakhstan to the north, Uzbekistan to the west, Tadjikistan to the south, and China to the south and east.

Capital: Bishkek

Population: 5,000,000. Kyrgyzstan is a multi-ethnic state. Representatives of more that 80 ethnic groups live in the Republic Kyrgyz, Russians, Uzbeks, Ukrainians, Germans, Tatars, Kazakhs, Uighurs, and Tadjiks, among others. The average population density in Kyrgyzstan is 22 people per square kilometer. More than 80 percent of the population lives in low-lying valleys and foothills. Most densely populated are the highly industrialized regions of the Chui valley and the Osh and Jalal-Abad districts.


State Bodies governing Energy industry are:

 

1. State Property Fund

2. State Energy Agency

 

 Condition of exploration works on oil and gas

Now the problem of supply with hydrocarbons is the most actual, determining efficiency of economic development of the country.

Oil-and-gas fields are basically located in Fergana oil and gas zone where now the oil production makes 80 thd. ton and gas 35 thsd. ton.

The general area oil and gas perspective lands of the Kirghiz Republic makes - 22.3 thsd. km2. More than 5 thsd. km2 belong to well investigated Fergana Basin, the others 17 thsd. km2 - the scantily investigated perspective territories of intermountain basins: Alai, Naryn, At-Bashi, Ak-Sai, Toktogul, Issyk-Kyl, East - Chui, Talas.

Now petrosearch exploration works are carrying out by the following companies: Joint-stock company "Kyrgyzneftegaz", State Geologic exploration Agansy, Joint-ventures and the Investment companies: "Kadima Petrolium", "KNG-Hydrocarbones", "Zhibek-Hydrocarbones", "Textonic", "Target-one", and others.

The Kyrgyz Republic is the importer of the miniral oil and oil products, spending on these purposes annually 100-120 million. To decrease the dependence from external deliveries there is the problem now to reduce the oil import due to internal oil production.

Predicated hydrocarbon resources on Republic are within the range of 375-765 mln. ton.

On the Fergana Basin the hydrocarbon resources are explored and mastered at 51%. On January, 1, 2001 the JSC "Kyrgyzneftegaz" has on balance 15 wells of oil and gas with reserves of oil 89.5 million ton (including 11.4 mln. ton of mineable reserves) and gas - 4.9 bln. cubic meters. On January 1, 2001 it is extracted from those resources about 10.4 mlln. ton of oil and 7 bln. m3 of gas.

Condition of reservoir engineering

Joint-stock company "Kyrgyzneftegaz" develops 7 oil-fileds, 5 of them are located in Djalal-Abad and 2 in Batken areas, with mineable reserves on January, 1, 2001 - 11481.0 thsd. ton. Basically, there are the following explored fields of hydrocarbons: "Mali-Suu IV-East Izbaskent" - 8660.0 thsd. ton, including 5396.0 thsd. ton on III layer, 885.0 thsd. ton on V-VII layers. The oil-field "Beshkent-Togap" has 725 thsd. ton of oil.

Resources were explored in 50th, and last of them (Beshkent-Togap) in 1974-1976, and now they are in late stage of development. In this connection the volumes of oil-recovery annually decrease because of natural decrease of resources. So, if in 1990 each of 442 wells extracted daily 1.0 ton of oil, then from 2001 the average daily extraction was 0.6 tons for 320 working wells. Dynamics of decrease in total production of oil is obvious.

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Natural Gas

Gas industry of Kyrgyzstan originated in 1969, when the first Buhara gas well was put into operation and the first gas pipeline Tashkent-Bishkek-Almaty was constructed.

For today, Kyrgyzstan has an extensive gas transmission system, which consists of 2,838 km of pipelines, 22 compressor stations (879 compressor shops).

Supply and transportation with the natural gas

 

Gas pipelines length (km)
Gas pipelines length in the north of the Republic 388.25
Gas pipelines length in the south of the Republic 358.65
Total length of main gas pipelines 746.90
Total length of middle-pressure gas pipelines 527.68
Total length of low-pressure gas pipelines 1,563.45

 

Consumption of gas by the northern area of Republic (thsd. m3)
  2000 2001 2002
Annual consumption of gas 625,770.8 639,687.3 640,000.0
Min daily consumption of gas 876.2 965.3 1,000.0
Max daily consumption of gas 3,424.3 2,940.5 3,100.0

 

Consumption of gas by the southern area of Republic (thsd. m3)
  2000 2001 2002
Annual consumption of gas 91,175.0 80,608.4 80,000.0
Min daily consumption of gas 111.0 130 100
Max daily consumption of gas 395 510 500

 

Transportation of gas to Kazakhstan (thsd. m3)
  2000 2001 2002
Annual consumption of gas (Almaty) 730,183.0 711,176.5 710,000.0
Annual consumption of gas In Jambul area 314,611.0 533,745.8 500,000.0
Annual gas intake from transportation service 26,103.49 33,855.2 30,000.0

 

Transportation of gas via southern area of Republic (thsd. m3)
  2000 2001 2002
Annual consumption of gas   5,558,324.9 5,600,000
Min daily consumption of gas, December   11,879 11,000
Annual gas intake from transportation service, May   46,281 45,000

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Investment Opportunities

Legislation

  • The Law on Energy No 56 from 30 October 1996
    This Law determines the main principles of the organization and regulation of activities in the Fuel-Energy Sector. The provisions of the present law apply to all enterprises of the Fuel-Energy Sector regardless of the form of ownership.

  • The Law on Oil and Gas No 77 from 8 June 1998
    This Law determines the main principles of the organization and regulation of activities in the Oil and Gas Sector.

  • The government regulation about State Energy Agency No 198 from 26 April 2001
    Contained the list of organizations regulated by Agency.

  • The government regulation about Development Programe in Oil and Gas Industries No 763 from 5 December 2001
    Approves the Development Programe including the conditions of explorations work for oil and natural gas, conditions of oil-field development.

  • The President's Decree about increase of gas and oil production in Kyrgyz Republic No 236 from 31 July 2001

Investment Opportunities

 

No Name of project Estimated time of Operation (months)
1. Arrangements for reliability enhancement of main pipelines
1.1 Re-equipment of valve drives 24
1.2 Maintenance of valve drives 24
1.3 Restore of enclosures of GDS 24
1.4 The equipment for the intense measuring are necessary  
1.5 Replacement the protection covers on connection points "ground-air" 24
1.6 Supplying the cathodic stations by power 24
1.7 Setting up the check-points of cathodic protection system. 24
1.8 Reconstruction the anodic earth leads (grounding electrode) 24
1.9 Setting the isolating gaskets "ground-air" in frontier points. 5
2. Building the interstate measuring stations 8

 

Investment Legislation

  • The Law on foreign investments in Kyrgyz Republic No 66 from 24 September 24 1997
    This Law determines the main legal, economic and institutional principles of investments in Kyrgyz Republic.

  • The President's decree No 102 from 25 March 1992
    About international fund of business assistance

  • The President's decree No 289 from 1 October 1998
    About additional measures for favorable investment attraction in Kyrgyz Republic.

  • The President's decree No 254 from 22 August 2001
    About additional improvements in activity for attraction and using the investments in Kyrgyz Republic.

 

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