Krygyz Republic
The Kyrgyz Republic is located in Central Asia. Landlocked and mountainous, it borders Kazakhstan to the north, Uzbekistan to the west, Tajikistan to the southwest and the People's Republic of China to the southeast.
The Tien Shan Range has some of the highest and most beautiful mountain peaks in the world. These give rise to numerous rivers and lakes, including Lake Issyk-Kul literally "hot lake", named for its perennial waters that flow the year round despite the high altitude and freezing winters. Lake Issyk-Kul is the second largest mountain lake in the world after Titicaca in South America. So large are its waters and so deep (in volume 1.738 cubic km, in depth 800m) that the lake is often mistaken for an inland sea.
Government and Fiscal Regime
The Kyrgyz Republic is often called the Switzerland of Central Asia for both its scenic beauty and fiscal appeal.
A democratic country, it has a stable economy, stable currency and an excellent fiscal regime with low tax rates - 10% income tax, royalties on oil production of around 7%, and there is no excise.
It is a member of the World Trade Organisation (WTO) and has a free market economy with freedom to transfer funds, export oil and exchange currency. There are strong foreign investment laws with added protection of an investment agreement with the government.
Oil Market
Close to Caspian’s Charvak lease, in the city of Jalal Abad, is an under-utilised British operated (Petrofac) oil refinery capable of producing up to 10,000bbls/day.
Oil production in the Kyrgyz Republic peaked at 28,000bbls/day prior to the Soviet break-up, but with no investment capital, historically low oil prices and no refinery (at that time) in a land-locked country, production fell away.
Consumption within the country is currently some 20,000bbls/day, with only around 1,200bbls/day produced locally.
Infrastructure
More than a dozen airlines service the capital city Bishkek (population approx 900,000), including Aeroflot, British Airways, China Southern Airways and Turkish Airlines.
A major road links Bishkek with the second city, ancient Osh in the centre of the country. Both Osh and Jalal Abad are linked by air to Bishkek.