The main problems and opportunities of KazMunayGas in realization оf its oil and gas projects Introduction



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The main problems and opportunities of KazMunayGas

in realization оf its oil and gas projects

Introduction

The national company KazMunayGas was formed in accordance with the President’s Decree of February 20, 2002 through the merger of the companies Kazakhoil and Transport of Oil and Gas. Practically, since that time the task was set to form a vertically - integrated company which should take the leading positions in the Kazakhstan’s oil and gas sector and become a large transnational company in a long term prospect.

It should be stressed that activity of KazMunayGas in realization of projects is directly connected with the state strategy for the development of the Kazakhstan’s oil and gas sector. For example, the government of Kazakhstan has adopted several special programs and projects in which a leading role is allocated to KazMunayGas as a national company. In particular, the talk is about the «Program for the development of the petrochemical industry in the Republic Kazakhstan for 2008-2013» and about the «Complex plan for the development of oil refineries in the Republic of Kazakhstan for 2009-2015». In addition, in February 2010 a state program for the country’s forced industrial and innovative development through 2014 has been approved.

At the same time, a strategic plan has been elaborated for the development of KazMunayGas for the period till 2015 in the following directions:

- Exploration and production of oil and gas resources;

- Expanding the volume of proved hydrocarbon reserves by the rates outstripping their exhaustion, and increasing the fields’ recovery;

- Transportation, processing and marketing of oil and refined products;

- Development of gas sector;

- Development of service sector and infrastructure;

- Introduction of environmentally sound and efficient technologies;

Thus, practically all projects, which are run currently by KazMunayGas, are directly connected with the approved state programs. However, as practice shows, on many directions KazMunayGas is not capable of implementing the projects without attraction of financing, investors and advisers from outside.



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