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Kazakhstan: Efficiency Drive at KMG

Kazakhstan’s KMG held numerous meetings and workshops in August seeking to increase efficiency in its own production as well as joint work with IOCs. The company also used these events to publicize the achievements of its ongoing transformation program. Last week, KMG’s E&P and strategy teams completed a preliminary overview of its subsidiaries’ and affiliates’

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Kazakhstan: Kulibayev Expands Influence over KMG

The new MoU, signed by Kazenergy General Director Bolat Akchulakov (see our Personality of the Week) and KMG Deputy Vice President for Legal Affairs Ardak Mukushov, envisions close cooperation to improve oil and gas sector laws as well as joint staff and research programs. Drawing on experts from both entities, Kazenergy will assist KMG in

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Kazakhstan: Outlook for KazTransOil’s Transformation: No Major Reforms in Sight

In late July, a Karaganda court issued a guilty verdict for 11 suspects accused of stealing oil from a KTO pipeline and the Kazakhstan-China Pipeline Company (an entity partly owned and operated by KTO). While the precise damage is still being calculated, the perpetrators stole tens of thousands of dollars’ worth of crude by cutting

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Kazakhstan: Eurasia Project Inches Ahead While Other New Deals Are More Promising

Amid much fanfare, on 21 June the Kazakh government signed an agreement with KazMunayGas (KMG), Rosneft, CNPC, SOCAR, Eni and NEOS GeoSolutions to develop the Eurasia project. This will entail drilling an unprecedented 15km-deep well, Caspian-1, in the northern part of the Caspian Sea (75% of the project is in Kazakhstan and 25% is in

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Kazakhstan: Latest Analysis KMG Streamlines Corporate Structure

Last week KMG CEO Sauat Mynbayev announced that the company is transforming its subsidiaries in order to reduce red tape. These reforms have been discussed for over two years but concrete details are only now emerging. Mynbayev said the company is planning to convert some of its subsidiaries to limited liability partnerships (LLPs) and pass

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Kazakhstan: KMG-CNPC Gas Export MOU: Rationale and Outlook

On 7 June, Chinese President Xi Jinping started a four-day state visit to Kazakhstan, his third trip to the country. He is set to advance bilateral ties and attend the 17th meeting of the Shanghai Cooperation Organization (SCO) Council and the opening ceremony of the World Expo in Astana. However, as this year marks the

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Kazakhstan: Outlook for KMG Privatization and Reform

On 10 May Kazakh Finance Minister Bakhyt Sultanov said that Air Astana, KazAtomProm and KMG remain on short list of state-controlled companies to be privatized, with 2019 as the latest possible completion date. This echoes the upbeat rhetoric of Umirzak Shukeyev, the head of the Samruk-Kazyna Welfare Fund (SK Fund), who since late 2016 has

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Kazakhstan: Challenges in the Refining Sector: Delays Ahead

This week the Kazakh Ministry of Energy released statistics showing that overall output of all fuels in Q1 2017 grew 17.5% year-on-year. However, even though imported fuels remained at about 30% of the total supply, rising demand caused imports to grow in absolute numbers.

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Kazakhstan: Disagreements Over KTG’s Reform: The Growing Political Role of Gas Pipelines

At the end of April, KTG’s press service dismissed Kazakh media speculation about the transfer of KTG assets from KMG and the establishment of an independent new company called KazakhGas. In mid-April, mainstream media outlets had cited anonymous sources in KMG and KTG that KTG and its affiliate companies would be merged into a new

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Kazakhstan: Ministry of Energy Announces Major LPG Market Reform

On 10 April the Ministry of Energy held a briefing about the future of the LPG market in Kazakhstan. Ziyash Kiyakbaev, a director of the Department for Development of the Gas Industry, said that the ministry had introduced amendments that will bring about a gradual cancellation of state regulation of wholesale prices for LPG beginning