BAKU, Azerbaijan, Jun. 5
By Nargiz Sadikhova - Trend:
Kazakhstan’s KazMunayGas National Company (KMG) is considering transferring its KazTransGas and KazTransOil subsidiaries to Kazakh Samruk Kazyna Sovereign Wealth Fund in order to optimize KMG structure, KMG’s Chairman of the Management Board Alik Aidarbayev said, Trend reports with reference to KMG.
Aidarbayev made the statement during a press conference.
“Over the period of infrastructure development, KazTransGas and KazTransOil being a part of KMG was justified. It was necessary to concentrate all resources in a single center for the development of a diversified network of transport routes. To date, all this work is almost complete and the two companies have already become self-sufficient. Taking this into consideration, the proposal to reassign the KazTransGas company directly to the Samruk-Kazyna Fund was made. This will reduce management levels, keep the state’s infrastructure projects in the event that KMG enters IPO, and KMG itself will focus on exploration, production and refining of oil and gas, oil and gas chemistry projects,” Aidarbayev said.
Currently, KMG started taking measures in relation to KazTransGas. Firstly, corresponding consent of state bodies must be obtained, as well as the approval of the boards of directors of the Samruk-Kazyna Fund and KMG.
“The negotiations will also be held with other interested parties with whom KMG has a contractual relationship. Work will be carried out with creditors, including holders of KMG Eurobonds, to explain the transaction, the reasons for its implementation and to obtain their consent. Decisions on the structure of the transaction will be made taking into account their interests, as well as the impact on KMG's credit ratings. The issue in relation to KazTransOil JSC will be considered additionally at a later stage,” the KMG said.
KazMunayGas National Company is Kazakhstan's national operator for exploration, production, refining and transportation of hydrocarbons, representing the state in Kazakhstan's petroleum sector.
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