News 2020June 2020
The chairman of the board of KazMunayGas Alik Aidarbayev proposed transferring KazTransGas to the management of the Samruk Kazyna fund. During the meeting of the management board of Samruk-Kazyna under the chairmanship of Nursultan Nazarbayev, Aidarbayev explained that this would primarily reduce the level of management.
"Secondly, it will allow the government to leave infrastructure projects in case KazMunayGas comes to IPO. Thirdly, KazMunayGas itself will be able to focus on refining and production of oil and gas and projects entrusted to us in the field of oil and gas chemistry," he explained and added that abroad the transport infrastructure exists separately and belongs to the state.
Subsequently, Prime Minister Askar Mamin supported the proposal for the restructuring of KazMunayGas.
“Separation of hydrocarbon exploration, production and processing functions from transportation functions within the framework of the proposed measure will create an opportunity for the company to specialise in a narrower range of issues. This will increase the stability and market attractiveness of the company,” he explained.
“I support the proposal to reorganise KMG by separating KazTransGas and KazTransOil as subsidiaries of Samruk-Kazyna itself. This will allow KMG to focus on core activities, including exploration, production, oil refining, and transport companies on the development and diversification of transport routes," Nazarbayev said.
Later, the press service of KazMunayGas reported that the company had begun to carry out the instructions in relation to KazTransGas.
“It is necessary to obtain the appropriate consent of state bodies, as well as the approval of the boards of directors of Samruk-Kazyna and KMG. There will also be negotiations with other interested parties with whom KMG has a contractual relationship. Work will be carried out with creditors, including holders of KMG Eurobonds, to clarify the transaction, the reasons for its implementation and to obtain their consent. Decisions on the structure of the transaction will be made taking into account their interests, as well as the impact on KMG's credit ratings. The issue regarding KazTransOil will be considered additionally at a later stage," KMG explained.