KazMunayGas and Samruk-Kazyna signed share management agreement with respect to 100% of KazTransGas common shares
On 11 March 2021, JSC NC “KazMunayGas" (KMG) and the Sovereign Wealth Fund Samruk-Kazyna JSC (the Fund) entered into a share management agreement (SMA or the Agreement) with respect to 100% common shares of JSC “KazTransGas” (KTG).
The SMA will enable the Fund to be more actively involved in managing KTG to provide support on strategic issues related to its development like improving the gas pricing regulation in the domestic market, modernizing and expanding the gas pipeline system, and further gasification of the country’s regions.
According to the Agreement, KMG will retain full control over KTG and will remain its beneficiary owner. KMG will continue fully consolidating KTG under IFRS. The Agreement does not imply the sale or disposal of KTG shares, is in compliance with all covenants in Eurobonds and other international obligations of KMG and KTG, and does not require consent from their respective creditors. The SMA and its provisions are accommodative to the current international credit ratings of KMG and KTG.
Maintaining investment grade credit ratings for KMG and KTG and meeting the interests of their international investors, including the holders of KMG and KTG Eurobonds, are important strategic priorities for KMG.
Earlier in June 2020, the Fund’s Management Council publicly announced that its Chairman, First President of Kazakhstan Mr. Nursultan Nazarbayev, asked the Government of Kazakhstan, the Fund, KMG and KTG for studying the possibility of and then adopting a final decision with respect to subordinating KTG directly to under the Fund.
About JSC “National Company “KazMunayGas”:
JSC “National Company “KazMunayGas” (KMG) is Kazakhstan’s leading vertically integrated oil and gas company. KMG manages assets across the whole production cycle, ranging from exploration and production of hydrocarbons to transportation, refining and provision of specialized services. The Company, founded in 2002, represents the interests of Kazakhstan in the country's oil & gas industry.
KMG's main assets include:
Exploration and Production: Ozenmunaygas (OMG) – 100%, Embamunaygas (EMG) – 100%, Kazakhturkmunay (KTM) – 100%, KazMunayTeniz – 100%, Urikhtau (UO) – 100%, Mangistaumunaigaz (MMG) – 50%, Kazgermunay (KGM) – 50%, Karazhanbasmunai (KBM) – 50%, Kazakhoil Aktobe (KOA) – 50%, PetroKazakhstan Inc. (PKI) – 33%, Tengizchevroil (TCO) – 20%, Karachaganak (KPO) – 10%, Kashagan – 8.44%.
Oil and Gas Transportation, Gas Marketing: KazTransOil – 90%, Kazakhstan-China Pipeline (KCP) – 50%, MunaiTas – 51%, Batumi Oil Terminal – 100%, Caspian Pipeline Consortium (CPC) – 20.75%, Kazmortransflot – 100%, KazTransGas – 100%, Intergas Central Asia (ICA) – 100%, Asia Gas Pipeline (AGP) – 50%, KazTransGas Aimak – 100%, Beineu-Shymkent Gas Pipeline (BSGP) – 50%, KazRosGas – 50%.
Refining: POCR - 100%, AR – 99.53%, PKOP – 49.72%, KMG International - 100%, Petromidia – 54.63%, Vega – 54.63%.
About JSC “KazTransGas”:
KazTransGas JSC is the principal gas-energy and gas-transportation company of the Republic of Kazakhstan, representing the state both on the domestic and foreign gas markets. The company manages the centralized infrastructure for commercial-grade gas transportation through trunk gas pipelines and gas-distribution networks, provides for international transit and engages in gas sale on the domestic and foreign markets, and develops, finances, builds and operates gas pipelines and gas storages. KazTransGas is a reliable supplier of gas to consumers, having the largest gas transmission network in the Central Asia region, and a unified domestic gas supply system.