KMG EP restructures its industrial subsidiaries
February 1. Interfax-Kazakhstan. Astana
JSC KazMunaiGas Exploration Production (KMG EP) is giving more powers to its regional production units: Uzenmunaygaz and Embamunaygaz.
“The Board of Directors considered the Company’s management proposal to transfer significant powers to the production facilities “Uzenmunaygaz” and “Embamunaygaz”. The Board agreed with the suggestion to transform the two production branches into joint stock companies. KMG EP will own 100% of the shares of the new entities,” the company said in a press release.
The Board of Directors of KMG EP has decided to create joint stock companies based on existing production facilities and elected new members to the Management Board
“These changes involve the transfer to the newly created joint-stock companies of the fixed assets and the subsoil use rights, subject to approvals by appropriate authorities. Joint-stock form of ownership will give the companies necessary autonomy in the conduct of their business operations and will ensure their management’s responsibility, as well as transparency and compliance with modern standards of corporate governance,” said the company.
The Board of Directors commissioned an independent assessment of the assets that are to be transferred. Once it is approved by the Board of Directors, the creating of the new joint stock companies will be put on the agenda for an Extraordinary General Meeting of Shareholders of KMG EP.
As reported, on May 26 some employees of OzenMunayGas in the town of Zhana Ozen (Mangistau Region, western Kazakhstan), mainly workers of the transport departments, did not report to work. They were joined by the employees of Karazhanbasmunay and its subsidiaries, ArgymakTransService and TulparMunayService, who went on a strike demanding pay rises, including by introducing various multiplying factors.
2,000 employees wren fired over the unsanctioned strikes. Massive rioting broke out in the towns of Zhanaozen and Shetpe in West Kazakhstan on December 16 in which 16 people died and over 100 got injured.
Earlier at a meeting in Aktau (administrative center of Mangistau region) the President of Kazakhstan Nursultan Nazarbayev ordered the government and the Samruk-Kazyna National Welfare Fund to give legal entity status to the subsidiaries of the KazMunayGas national company, the presidential press office said in a statement.
“As the president noted, the government and the Samruk-Kazyna fund should give legal entity status to the subsidiaries of the KazMunayGas national company. This is needed in order to enable the subsidiaries to settle social disputes with employees promptly,” the statement said.
Nursultan Nazarbayev emphasized that every resident of Zhanaozen had an opportunity to be employed by one of the enterprises being opened as part of the Forced Industrial and Innovative Development Program.
According to the president, the Zhanaozen riots were caused by hooligans who had used the long-standing conflict between the management and workers of the Ozenmunaygas company as a pretext.
Nursultan Nazarabyev ordered the government to give a full assessment to the actions of the government agencies and the KazMunayGas management preceding the outbreak of violence in Zhanaozen and to draft proposals on the punishment of those guilty of wrongdoings and on the reform of the KazMunayGas management structure.
In their turn, the new heads of KazMunayGas and KazMunayGas Exploration Production Lyazzat Kiinov and Alik Aidarbayev assured the president that all problems of the fired workers, including those of their employment, would be solved very soon.
KMG EP is among the top three Kazakh oil and gas producers. The overall production in 2011 was 12.3mt (an average of 250 kbopd) of crude oil, including the Company’s share in Kazgermunai, CCEL and PKI. The total volume of proved and probable reserves, as at the end of 2010 was 232mt (1.7bn bbl), including shares in the associates – about 2.2 bn barrels. The Company’s shares are listed on the Kazakhstan Stock Exchange and the GDRs are listed on The London Stock Exchange. The Company raised over US$2bn in its IPO in September 2006. The International rating agency Standard & Poor’s (S&P) confirmed KMG EP’s “BBB-” corporate credit rating in December 2011 and “GAMMA-6” rating in September 2011.
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New head appointed to Kazakh KazMunaiGas Refining and Marketing
Feb. 1. Trend
A new head has been appointed to Kazakh National Oil and Gas company KazMunaiGas Refining and Marketing (KMG RM).
A former Deputy Chairman of Kazakh Food Contract Corporation Serik Kulambaev was appointed to the post of KMG RM General Director, KazMunaiGaz spokesman said to Interfax-Kazakhstan.
Earlier KMG RM was headed by Zhanat Tusupbekov.
KazMunaiGas Refining and Marketing is a 100 percent subsidiary of Kazakh National Oil and Gas Conmpany KazMunaiGas.
KMG RM realizes management of refining assets, exports of petroleum and petroleum products, development of petroleum products retail sales. The company has shares in Atyrau refinery (99.5 percent), Shymkent refinery (49.7 percent), Pavlodar Petrochemical Plant (58 percent) and Rompetrol company (100 percent).
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Kazakh company KazMunaiGas EP elects new board members
Feb.1. Trend. Astana
The Board of Directors of the Kazakh Oil and Gas Company, KazMunaiGas Exploration Production (KMG EP) elected its new members, the company said on Wednesday.
New board members are elected in connection with early termination of powers of former members.
According to the company, the following board members were elected: Deputy General Director for Production, Abat Nurseitov; Managing Director – Financial Сontroller, Benjamin Fraser; Managing Director for Legal Affairs, Malik Saulebay; Managing Director for Logistics and Contracts, Eldan Salimov; Director of the HR Department, Botagoz Ashirbekova.