Baku, Azerbaijan, Jan. 19
By Elena Kosolapova - Trend:
Kazakhstan's oil and gas company KazMunayGas said Jan.19 that the merger of two of its major subsidiaries - KazTransOil and KazTransGas - will not happen.
"In connection with the incoming media inquiries on the possibility of merging the two subsidiaries of the KMG group - JSC KazTransOil and JSC KazTransGas - the company officially states that such a merge is economically unfeasible," the company said.
KazMunayGas (KMG) is the Kazakhstan operator for exploration, production, refining and transportation of hydrocarbons, representing the state interests in the oil and gas industry of Kazakhstan. Joint Stock Company "National Company "KazMunayGas" was established by way of merger of "Kazakhoil" National Oil and Gas Company and "Oil and Gas Transportation" National Company pursuant to the Decree of the President of the Republic of Kazakhstan as of February 20, 2002.
KazTransGas JSC was established in accordance with a governmental decree of the Kazakh Republic No173 dated February 5, 2000, in order to systematise the work of the gas industry.
In accordance with the Kazakh government decree N914, as of July 5, 2012, KazTransGas JSC is defined as the national operator in the field of gas and gas supply. Companies and organisations dealing with gas production, transportation and sale are included in the KazTransGas company group.
KazTransOil is a largest oil pipeline company of the Republic of Kazakhstan, which provides services on oil transportation on the domestic market and for export.
KazTransOil JSC is an owner of the largest network of main oil pipelines and waterlines in the Republic of Kazakhstan, total length of which amounts to 5 502,997 km of oil pipelines (with account of 71,7 km of Kenkiyak - Orsk oil pipeline, which passes through the territory of the Russian Federation and which is on the balance sheet of Representation of KazTransOil in Samara) and 2 148,1 km of water pipeline.
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