Kazakh Uzenmunaygaz and Embamunaygaz to become more independent
Kazakhstan, Astana, Feb.1 / Trend, L.Podolyak /
The Board of Directors of Kazakh Oil and Gas Company, KazMunaiGas Exploration Production (KMG EP) has decided to create joint stock companies based on existing production branches Uzenmunaygaz and Embamunaygaz, the company said on Wednesday.
"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 report says.
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.
As required by law, 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.