Kazakhstan to Accelerate Sale Procedure of Mangistaumunaygas Shares
Kazakhstan, Astana, 2 June / Trend corr. K.Konirova / The sale of the shares of the Mangistaumunaygas joint-stock company of the national company KazMunayGas has been delayed baselessly, Karim Masimov, Prime Minister, stated in the selection meeting on 2 June.
"I gave a commission to repurchase the shares of Mangistaumunaygas, has been delayed baselessly. I am giving a commission to repurchase not less than 51% shares of the company soon," Masimov said addressing to the Ministers of Energy, leaders of the State-run holding Samruk and national oil and gas company KazMunayGas.
In the end of 2007, Karim Masimov, Prime Minister, stated that one of the key tasks of the government and National Bank in 2008 will be directed to struggle against the inflation. At the same time, Masimov noted that to reach necessary results the 'intervention' of KazMunayGas to more sensitive sectors of economy can not excluded. In this case, the strengthening of KazMunayGas in the domestic oil products market was taken into consideration so that the government will have lever to keep fuel prices stable.
The first step to 'intervention' will be taken by the company by acquiring 70% shares of the private oil company Mangistaumunaygas. The Prime Minister has agreed to implement this deal.
The most attractive part of the deal to purchase Mangistaumunaygas is the Pavlodar oil and chemical plant and trade 'daughter' of Mangistaumunaygas -"Gelios", which is the price legislator in the internal oil products market.
The national company has only 3% shares in the filling station and therefore it does not have enough force to exert pressure on growth of oil products prices.
According to the Ministry of Energy, there are three key players in the domestic oil products market in Kazakhstan -Trade House KazMunayGas, Gelios and PetroKazakhstan. Trade House KazMunayGas is the owner of Atirausk plant, as well as owns the Shimkent plant PetroKazakhstan. Gelios is a trade daughter of Mangistaumunaygas.
According to Prime Minister, the state should own the Pavlodar oil and chemical plant.