Exclusive
Kaztransoil – the Sky-High Rating of Confidence
Kaztransoil – the Sky-High Rating of ConfidenceFollowing the results of the first six months of the year, KazTransOil JSC, the national main oil pipeline operator of the Republic of Kazakhstan, has received a net profit of 36 billion 755 million KZT, which is 10% higher than in the same period of 2013. The agreements reached within the framework of the Eurasian Economic Union development gives confidence in further stable growth of indexes. The company took an active part in the preparation of a draft Treaty of the EAEC, and it is worth noting that Kazakhstan side managed to consolidate its position and interests in the energy area. Kairgeldy Kabyldin, the Executive Director of KazTransOil JSC speaks on the company expected future development.
-This year, a historically important decision for the country to join the Eurasian Economic Union was made. Given the national oil operator status of KazTransOil JSC, representing the interests of Kazakhstan in the sphere of oil transportation, what changes have occurred in the activity of the company?
The signing of the Treaty on the Eurasian Economic Union by the leaders of Kazakhstan, Russia and Belarus was an important historical event for our country and marked a new stage of its integration development. I would like to note that KazTransOil JSC, along with other Kazakhstani enterprises, received the maximum participation possibility in the preparation of the document.
One of its key conditions in the energy area, namely in organization, management, operation and development of the common oil and oil products markets is that the Member States ensure: a guaranteed opportunity of long-term transportation of oil and oil products by the operating transport system in the territories of the Member States, including the main oil and oil products pipelines; access to oil and oil product transportation systems, located in the territory of each Member State, for the economic entities of the Member States under the same conditions as for economic entities of EAEC Member States on whose territory the transportation is executed. T
he tariffs on oil and oil products transportation are set up for the economic entities of Member States at a level not exceeding rates established for the economic entities of the countries on whose territory the transportation is executed. Also EAEC countries are unifying the norms and standards for oil and oil products. In particular, this will allow the energetics industries of Member States to establish unitary requirements for the transportation and quality of oil and oil products. As a national oil operator KazTransOil JSC intends to actively participate in this work, as well as in other draft international agreements, concluded by Kazakhstan.
Previously all the arrangements to which I have referred, existed, but were the subject of constant negotiations and were revised each year. Now, all this is already settled at the interstate level, which guarantees stability and long-term perspective.
Kaztransoil – the Sky-High Rating of Confidence-What are the company's development plans in the light of the Economic Union of the three countries? What investment projects the company is implementing and planning today? What are the expectations of their fulfilment?
The establishment of the Eurasian Economic Union will, of course, have a powerful impact on all sectors of the economy of Kazakhstan, including KazTransOil JSC. As for the cooperation with oil transportation companies, the following should be noted.
In order to ensure the transportation of Kazakhstan oil through the territory of Russia and Belarus KazTransOil JSC has signed contracts with oil transporting and shipping companies for transportation services on the main oil pipelines of this countries and transport and shipping services for handling the reshipment of Kazakhstan’s export oil in the sea ports (Transneft JSC, Gomeltransoil Druzhba JSC, Transneft-service LLC, Nevskaya pipeline company LLC, Primorsk Oil Terminal LLC).
For example, the export volumes of the Atyrau-Samara system are mapped on the long term, and this gives our oil companies confidence in planning. As each market - the Black Sea, Eastern Europe, the Baltic countries, has a defined pricing policy.
I’m emphasizing that along with the development of export potential, one of the most important tasks in the context of providing the domestic market of the Republic by the oil products is also the development of a network of oil pipelines. In this regard, we are investing to maintain current assets, to ensure the reliability of the linear part of the pipeline and pumping stations performance. Financing of company’s investment projects is carried out by own means, without the use of budget (public) funds.