Kimep University
Project:
Kaz-Munay Gaz
IPO
Kaz-Munay Gaz’s Initial Public Offering
February 14, 2011 Nursultan Nazarbayev at the 13th Congress of the Party "Nur Otan" in Astana on Friday instructed to provide accommodation to the public shares of state companies such as "Samruk-Energo", KEGOC, "Kazpost." In the next stage, in 2012-2013, put the stock market shares of National Company "KazMunayGas", "Kazakhstan Temir Joly", "Kazatomprom".
As you know, the program "People's" IPO, in which planned to sell stakes in Kazakhstan's most attractive companies with state participation, the government implemented to encourage the further development of the stock market of the country and improve the financial literacy of the population.
In general, within the framework of the "people's IPO" is planned to implement the population and the pension fund from 5% to 15% of the shares of state companies.
The authorities expect that the demand for pre-fininstrumenty in the "people's" IPO among individuals and pension funds (NPF) is $ 300-500 million of them current demand on the part of the population is estimated at $ 100-200 million, the demand from pension funds state-owned shares - at $ 200-300 million.
It was reported that the program "People's IPO» in Kazakhstan will be implemented in several stages. The government expects the participation of not less than 160 thousand individuals, and all the savings fund of RK.
Identified candidates for the company's IPO: 1st tier - "KazTransOil», KEGOC, Air Astana, the 2nd tier - JSC "KazTransGas", JSC "KazMorTransFlot", "Samruk-Energo", 3rd - AO "Kazakhstan Temir Joly", JSC "Kaztemirtrans."
Among them is first-tier companies will be displayed in II-III quarters of 2012.
Second-tier companies will be displayed in 2013, third-tier companies - in 2014-2015. After the 2015 is supposed to consider the possibility of withdrawal of the IPO companies such as JSC "KazMunayGas" JSC and "Kazatomprom".
History of KazMunayGas
At the end of 1991, alongside with general changes in the structure of the state management of the republic, transformations took place in the management of Kazakhstan’s energy sector. The industry has passed under the jurisdiction of the Ministry of energy and electrification of the Republic of Kazakhstan and the State committee of the RoK on geology and subsoil protection.
In 1992, Kazakhstan, Russia and Oman established the Caspian pipeline consortium (CPC), planning to construct and equip the line for oil transportation from the Tengiz field to the Black Sea port in Novorossiysk. In this year agreement on development of oil and gas condensate field Karachaganak was signed between the Republic of Kazakhstan and the companies Ajip (Italy) and British Gas (Great Britain).
On 4 February 1993, the first joint venture in the oil and gas industry of the republic was created - Kazakhstan-Turkish enterprise KazakhTurkMunay. In March 1993, in connection with the necessity for exploring the Kazakhstan sector of the Caspian Sea, KazakhstanCaspianShelf (KCS) was founded by a resolution of the Government. On 6 April 1993, «a contract of century» was concluded. A long-term agreement ( 40 years) with the American company Chevron signed by the Government of the RoK was called this way. On 3 December 1993, an Agreement was signed on creating the International consortium for conducting geology and exploration works at Kazakhstan’s shelf of the Caspian Sea. The Consortium consisting of seven foreign companies (Ajip, British Petroleum, Statoil, British Petroleum, Mobil, Total, Shell) and KazakhstanCaspianShelf acting in this project as an operator signed an agreement on three-year geological study of the region’s oil potential. In 1993, Kazakhstan-German enterprise KazGerMunay was created – the largest enterprise in the republic with participation of Germany.
On 13 June 1994, the Ministry of Energy and Fuel Resources of the RoK was divided by the Decree of the President of the RoK into the Ministry of Energy and Coal Industry and the Ministry of Oil and Gas Industry. In July 1994 Kazakhstan presented a draft Convention on legal status of the Caspian Sea to the world community, in which it formulated its views on issues of development and operation of natural resources of the Caspian Sea. In the end of 1994 the Government of the country adopted the Program of development of oil and gas complex of Kazakhstan, which priority tasks wee:
strengthening of refining capacities;
full covering domestic need in oil products;
growth of oil export.
The Sole Shareholder’s aims, mission and vision of NC “KazMunayGas” JSC
The Shareholder’s aims:
Value growth.
Formation of efficient investment portfolio
Management efficiency increase.
Mission
Providing maximum profits for the Republic of Kazakhstan from development of the national petroleum industry
Increasing the company value, its profitability and ensuring safe production
Becoming a competitive petroleum company integrated in the international market
Support for domestic suppliers of goods, works and services, local staff development.
Vision
NC KazMunayGas JSC is a highly efficient and competitive integrated oil-and-gas company meeting the highest standards of production safety.
Strategic Aim
Entering the thirty largest oil and gas companies of the world.
Strategic priorities
NC KazMunayGas JSC will be developing as an integrated oil and gas company and will be engaged in non-core activities
The growth will be ensured through oil and gas exploration operations, and expansion and diversification of export routes of oil and gas.
In other sectors, JSC KazMunayGas will focus on sustaining strong positions by upgrading the production and increasing the efficiency of the operations.
The strategy will be implemented through introduction of transparent and simplified organizational structure, and development of efficiency management in all groups of companies of KazMunayGas.
In 2015, NC KazMunayGas JSC will be able to act as projects operator.