Key strengths
Unique geography
Kazakhstan has an extensive resource base, favourable location, and a unique opportunity to export to Europe and fast-growing Asian markets, including China.
Kazakhstan’s economy has grown eleven-fold over the last 20 years due to political and social stability, natural resources development, and enhanced industrial infrastructure.
The oil and gas industry is the leading economic sector in Kazakhstan. The oil and gas segment contributes significantly to Kazakhstan’s aggregate income from taxes and exports and remains a key investment destination. Foreign direct investments (FDI) into the industry were at higher than USD 70 bln over the last decade. The presence of global energy majors evidences Kazakhstan as an attractive investment region. Kazakhstan is among the Top 5 non-OPEC countries by the remaining 2P oil reserves.IHS Markit’s estimates.
Remaining 2P oil reserves, bln barrels (2019)
Source: IHS Markit Based on EDIN & Vantage Data as of 18 January 2020, excluding North American unconventional reserves (e.g., US onshore and Canada oil sands)
A preliminary estimate of GDP for 2019 as of 24 February 2020
Source: Statistics Committee of the Ministry of National Economy of the Republic of Kazakhstan Full integration across the value chain
KMG is the national leader in Kazakhstan’s oil and gas industry with a fully integrated added value chain.
As a national leader and a vertically integrated business, KMG has a strong foundation to support its long-term sustainable development. KMG’s assets comprise an entire hydrocarbon added value chain including exploration, production, transportation, refining, and marketing. The Company operates in Kazakhstan and Romania.
Solid financial performance
Despite heightened volatility of commodity markets and lower oil prices in 2019, financial performance remained solid. The average Dated Brent oil price decreased by 10% year-on-year, while key financial indicators, such as EBITDA, Free Cash Flow, and Net profit showed positive growth dynamics (3.6%, 27.5% and 50.5%, respectively).
Differentiated upstream portfolio
KMG has a differentiated portfolio of oil and gas production assets with attractive growth potential.
The Company also has unique access to new licenses and oil and gas assets put on sale in Kazakhstan to sustain inorganic growth.
KMG partners with international companies for major oil and gas projects on a global scale with the potential to boost hydrocarbon production: Tengiz, Kashagan, Karachaganak. Operating assets are mainly mature fields with stable production levels, efficiency improvement of which is considered as a key objective for the Company.
Modern oil refineries
The Company operates the four largest refineries in Kazakhstan and two in Romania. As a result of their comprehensive modernisation, KMG improved refining depth. Domestic demand for high-quality light petroleum products was fully covered. In addition, KMG started exporting light petroleum products to Europe and Central Asia.
Leading position in Kazakhstan’s midstream sector
The oil transportation system managed by KMG is well-diversified and has a high transit and export potential. Active investment phase in this segment has been completed, and the capacities have been ramped up to meet the needs of growing production volumes in Kazakhstan.
Advanced corporate governance framework and commitment to sustainable development principles
KMG is committed to environmental sustainability and social stability and recognises its responsibility to current and future generations.
The World Bank Initiative «Complete Cessation of Regular Flaring of APG by 2030»
UN 17 Sustainable Development Goals Initiative
CDP Climate Program
Global Methane Initiative