ISLAMABAD, Oct 7: Russian energy firm Gazprom on Friday signed a Memorandum of Understanding (MoU) with Pakistan to develop trans-national gas pipelines, underground gas storages and cooperate in other petroleum-related activities.
The MoU was signed by chairman and chief executive of Gazprom A.B. Miller and Pakistan’s secretary petroleum and natural resources Ahmad Waqar, following Gazprom delegation’s meetings with President General Pervez Musharraf and Prime Minister Shaukat Aziz.
The MOU signing ceremony was witnessed by the prime minister and the 10-member delegation of Gazprom.
The two sides agreed to cooperate in different fields of exploration and production of oil and gas, including research and development of gas fields.
The Russian energy giant would assist Pakistan in the use of natural gas as fuel for the converted diesel engines and development and operation of underground gas storage systems by utilizing the capacity of depleted gas fields.
The Russian firm also agreed to develop and operate trans-national gas pipelines, including gas imports from Iran, Qatar and Turkmenistan besides taking part in privatization of oil and gas companies in Pakistan. Gazprom will also provide training facilities in Russia for Pakistani experts from oil and gas sectors.
The two sides also agreed to jointly establish a coordination committee for implementation of the activities envisaged under the MoU and a couple of working groups within a month.
The two sides will meet again in Moscow by end of this month, tentatively on October 25-26 to follow up the decisions. Both parties would inform each other of their representatives to the coordination committee within a fortnight to organize and coordinate mutual activities.
The group will hold meetings to discuss and agree on specific steps to be taken by each party in the field of mutual cooperation within a month.
The parties would categorize certain information, gathered or exchanged by and between the parties, under the MOU, as confidential. The parties agreed not to divulge the same to a third party without the prior written consent of the providing party.
All disputes concerning the interpretation and application of the MoU shall be settled through negotiations. This MoU has come into force immediately and would be valid for a period of one year.
It shall be automatically renewed for a further period of one year unless terminated. Either party may terminate the MoU at any time, after the expiry of the first period of one year, by giving a notice of three months to the other party.
