BAKU, Azerbaijan, Mar. 15
By Nargiz Sadikhova - Trend:
Kazakhstan’s KazMunayGas national oil and gas company (KMG) and the Samruk-Kazyna Sovereign Wealth Fund JSC entered a share management agreement (SMA) with respect to 100 percent common shares of KazTransGas JSC (KTG), Trend reports citing KMG.
The SMA will enable the Fund to be more actively involved in managing KTG to provide support on strategic issues related to its development like improving the gas pricing regulation in the domestic market, modernizing and expanding the gas pipeline system, and further gasification of the country’s regions.
According to the Agreement, KMG will retain full control over KTG and will remain its beneficiary owner. KMG will continue fully consolidating KTG under IFRS.
The Agreement does not imply the sale or disposal of KTG shares, is in compliance with all covenants in Eurobonds and other international obligations of KMG and KTG and does not require consent from their respective creditors. The SMA and its provisions are accommodative to the current international credit ratings of KMG and KTG.
Maintaining investment grade credit ratings for KMG and KTG and meeting the interests of their international investors, including the holders of KMG and KTG Eurobonds, are important strategic priorities for KMG.
KazMunayGas (KMG) National Company is the Kazakhstan 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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