News 2016
December 2016KMG International
KMG International will be a strategic platform for NC KazMunayGas JSC and CEFC on development of oil and gas operations in Europe
On the day of the celebrating the 25th anniversary of the Independence of Kazakhstan, a treaty was repeatedly signed by the NC KazMunayGas JSC and CEFC (ChinaEnergy Company Limited), proving a firm intention to sell 51% of shares of KMG International (further- KMGI). One of the main conditions of the deal was the signing of a number of investment documents on 3 billion investments for KMGI, to be spent for the further development and strengthening the Company's position in the Black Sea region.
The transaction will be carried out in accordance with the standard procedures and stages of approvals, including the approvals from the competent authorities of the EU, Romania and China.
“Strategy of KMG International with a new shareholder shall stipulate the large-scale development projects, and the priority business location is Romania. Given the energy potential of Kazakhstan and China's financial resources, we intend to make a significant contribution to the development of this country. We intend to increase the refinery processing capacity to 10 mln tons/annually, building up to 200 new filling stations to accomplish the development of industrial services in the area of upstream and downstream, as well as to build a thermal power plant in co-generation mode at Petromidia plant site. Investments made to date, the implemented business model and further business partnership will constitute the definite factors that shall help us to look to the future with optimism in the context of further business growth",- said Zhanat Tusupbekov, the CEO of KMG International.
The KMGI assets and operating activities in Europe and the Black Sea region will serve as a platform for further development of the activities, which main objectives will be as follows: to improve operational and financial effectiveness of NC KMG and its subsidiaries outside of Kazakhstan, as well as expanding the CEFC activities internationally. The established joint venture will operate under the brand name of KazMunayGas, allowing the further development of Kazakh brand beyond the country’s borders!
In the long term, the NC KMG intends to continue supplying the oil to the subsidiary organizations of KMGI in order to maintain and to enhance the core operations in Europe, and also to supply the Petromidia refinery with 100% of Kazakh crude oil. It is worth noting that it would also help to fulfil the instruction of the President N.A. Nazarbayev to promote the commercial interests of the country abroad.
In general, the strategic partnership will provide the relevant benefits for the NC KMG, CEFC and KMGI, it will define a framework for the implementation of future cooperation projects and it will support the economic and social growth in the regions where new investment projects will be implemented, most of them are based in Romania.
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KMG- the National Oil&Gas Company of the Republic of Kazakhstan is a national operator for exploration, extraction, processing and transportation of hydrocarbons, which represents the State's interests in the oil and gas industry of Kazakhstan. National company KazMunaiGas is a vertically integrated oil and gas company, which is carrying out a full production cycle: from exploration and production of hydrocarbons up to their transportation and processing and provision of specialized services.
CEFC company is one of the fastest growing private companies in China. In 2016, the Company entered the Global Fortune 500 list, having taken 229th place. CEFC operates in the energy, financial and investment areas.
KMG International N. V. - the main activity of the group is refining, marketing and implementation of trading transactions on the international markets. The retail chain under Rompetrol brand includes more than 1100 fuel-distribution points in Romania, Georgia, Bulgaria, Moldova, Bulgaria and Moldova. The main activity of the company is concentrated in the Black Sea region, where the company owns two refineries. The Company also carries out the exploration works, provides the industrial services in the area of EPC and well maintenance.
Department of communications and public relations
of KMG International