BAKU, Azerbaijan, Dec.4
By Nargiz Sadikhova - Trend:
Kazakhstan’s KazMunayGas National Company has ahead of the schedule fulfilled its agreement liabilities for the supply of oil from Tengizchevroil LLP (TCO) on account of the advance payment received from the Vitol international trading company and the syndicate of international banks, Trend reports with reference to the press office of KazMunayGas (KMG).
The ahead of the schedule fulfillment of the liabilities on November 30, 2019 became possible due to measures to improve the financial condition, debt management and cash flow optimization of KMG group of companies.
In 2016, KMG held a tender among international oil traders on the sale of 20 percent of TCO’s oil, for which KMG has the priority right to acquire as a TCO shareholder. The key tender conditions were the purchase price of oil, ensuring the shipments stability and providing a long-term advance payment at a low cost. As a result of the tender the agreement was signed with major international trader, Vitol company, on the advance payment worth $3 billion before April 2020.
Assets received within the long term advance payment were used by KMG for subsidiaries funding, investments in Kashagan project, debt service and other goals.
In 2017, after partial fulfillment of liabilities on supply of oil and decrease of advance payment to $2 billion, KMG received additional $1 billion valid until 2021.
After the advance payment is paid, the contracts for supply will remain valid until their expiration dates (1H2021).
KMG is Kazakh operator for exploration, production, refining and transportation of hydrocarbons, representing the state interests in the oil and gas industry of Kazakhstan
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