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KazMunaygas subsidiary to expand in Kazakhstan

Oil&Gas Materials 10 January 2012 13:16 (UTC +04:00)
The two new companies will employ more than 2000 people. They will carry out transportation and drilling services to DE KMG and other companies working in Mangistau region.
KazMunaygas subsidiary to expand in Kazakhstan

Kazakhstan, Astana, Jan 10 /Trend L.Podolyak/

The board of directors of the KazMunayGas subsidiary which develops and extracts KazMunaiGas (DE KMG), has agreed to establish two new service companies in the Mangistau region of Kazakhstan. This is the area where previously protest actions of sacked workers took place, the company press service said on Tuesday.

The two new companies will employ more than 2000 people. They will carry out transportation and drilling services to DE KMG and other companies working in Mangistau region.
According to preliminary estimates, these measures will lead to an increase in operating expenses by 12.3 billion tenge ($83 million) and in capital investments by 8.3 billion tenge ($56 million).
"These costs are included in the budget of 2012 and may be partially offset by additional income from providing services to third parties. The Board will consult with the Government and the National Welfare Fund Samruk-Kazina, so that shareholders' interests are properly taken into account" a statement said.
Since May 2011 the Mangistau region has repeatedly experienced strikes by oil companies' employees demanding higher wages. A court found the protest action illegal and the firms dismissed thousands of workers for striking and absenteeism.
Mass riots hit the Kazakh oil town of Zhanaozen on Dec.16 killing 16 and injuring more than 100 people. Buildings and cars were burned and private and commercial property destroyed. Kazakh President Nursultan Nazarbayev declared a state of emergency in Zhanaozen until Jan.31.
By President Nazarbayev's order a government commission has been set up to investigate the events in Zhanaozen. He has also ordered officials to deal with the problem of fired workers and take measures for their employment issues as soon as possible.

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