The Gazprom Headquarters today have hosted a working meeting between Alexey Miller, Chairman of the Gazprom Management Committee, and Baktykozha Izmukhambetov, Energy and Mineral Resources Minister of the Republic of Kazakhstan.

The parties addressed further cooperation deepening between Russia and Kazakhstan in the gas sector. Special attention was paid to the issue of setting up a Russia-Kazakhstan joint venture on the platform of processing capacities of the Orenburg Gas Processing Plant.

Alexey Miller and Baktykozha Izmukhambetov highly appreciated the results of Gazprom and KazMunayGas’ actions to set up the joint venture.

The parties also analyzed the progress in the work covering the conclusion of a long-term contract for the supply of gas from the Karachaganak field to the Orenburg Gas Processing Plant.

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The Republic of Kazakhstan possesses some 2 tcm of the explored natural gas reserves, with the undiscovered natural gas resources, including the Caspian offshore potential, valued at 8.3 tcm.

In recent years domestic gas production and consumption in Kazakhstan has annually averaged 12 and 5 bcm, respectively. Pursuant to a development program for Kazakhstan’s gas industry, by 2020 gas extraction is scheduled to be boosted to 40 bcm per year, with exports to potentially increase as well.

The Karachaganak gas condensate field is located in the Aksai District of the Ural Oblast (Republic of Kazakhstan), 130 km from the Orenburg Gas Processing Plant.

The Karachaganak field is explored and developed by the Karachaganak Integrated Organization – Karachaganak Petroleum Operating B.V. representing the consortium of British Gas (32.5 per cent), ENI (32.5 per cent), Chevron (20 per cent) and LUKOIL (15 per cent). The field development project is anticipated to build annual gas production up to 25 bcm by 2012.