The Kyrgyz Committee for the Management of State Property and Direct Investment plans to transfer a state packet of 85.16% of shares in the oil and gas company Kyrgyzneftegaz to trustee management, the committee's press service told Interfax.
The reason behind this decision is the need to improve management at the company, increase oil and gas production, and also improve the company's financial performance, the press service said.
In line with the republic's legislation, a tender commission will be set up to transfer the state shares to trustee management, which will reach a decision on the transfer of the shares on condition that there are at least two contenders. The contenders should submit a proposal for investment in the development of the company, a development strategy and forecasts for an increase in oil and gas production, the press service said.
Kyrgyzneftegaz is involved in oil and gas production in the south of Kyrgyzstan. The company produced 75,540 tons of oil in 2003 and about 29 million cubic meters of gas. The Kyrgyz government considers this to be unsatisfactory and regularly brings up the issue of increasing production levels to make southern districts in the republic relatively independent from imports of oil products and gas.
The State Committee for the Management of State Property and Direct Investment owns 85.16% of Kyrgyzneftegaz, the republic's Social Fund owns 8% and the company's workforce owns 6.84%.
Interfax, May 05, 2003