Chronology

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.

In March 1995, Production Sharing Agreement in respect of the Karachaganak field was signed between the Republic of Kazakhstan represented by Kazakhgas and Ajip (Italy), British Gas (Great Britain), Gazprom (Russia).
On 28 July 1995, the Decree of the President of the RoK «On oil» having force of law was adopted. One of the basic purposes of the law is promotion to involving foreign investments into development of oil and gas resources of the country.
On 4 October 1995, the Government of the RoK approved feasibility study for construction of the gas pipeline «Aksay-Kostanay-Kokshetau-Akmola» of 480 km length and volume of 4.7 mln. cubic meters per year.

In April 1996, there was signed an agreement between Kazakhstan, Russia, Oman and Consortium of international oil companies on construction of an oil pipeline with throughput capacity of 67 mln. tons by «Tengiz-Tikhoretsk-Novorossiysk» route (СTС). According to this agreement, the share of Russia made up 24%, Kazakhstan - 19%, Oman - 7%, the rest part was distributed between 8 oil companies.
On 9 July 1996, an agreement about cooperation principles of coastal states of the Caspian Sea was signed.
In August 1996, the International consortium KCS completed topographical survey of Kazakhstan oil field at the Caspian shelf. Potential of the region is estimated within limits from 26 up to 60 billion barrels of oil.
In 1996, there was signed an agreement about construction of the oil pipeline «Baku-Batumi-Supsa» passing through Georgia. The part of the Caspian oil was supposed to be exported by this way to the Ukraine and then to Europe.

On 4 March 1997, the Ministry of Oil and Gas Industry was abolished and the National oil and gas company Kazakhoil was created to which all rights for participation of Kazakhstan in the largest oil and gas projects and in the enterprises of the industry were conveyed.
On 2 April 1997, the National company on oil transportation KazTransOil was created. In 1997, privatization of the enterprises of the oil and gas sector began. Controlling block of the shares of Aktobemunaygas JSC (60%) was first sold in July 1997 to the Chinese National Petroleum Company (CNPC).
On November 18, 1997, in Washington during the visit of the President N. Nazarbayev the final Production Sharing Agreement in respect of oil and gas condensate of the Karachaganak field was signed. Share of the Republic of Kazakhstan in divisible income made up 80%. Specially created «Karachaganak Integrated Organization» (KIO, Karachaganak Petroleum Operating) was composed of «Ajip» (32.5%), »British Gas» (32.5%), «Texaco» (20%) and «LUKoil» (15%).
On 18 November 1997, Production Sharing Agreement in respect of the Northern Caspian Sea was signed between Ajip, British Gas, British Petroleum and Statoil, Mobil, Shell, Total and KazakhstanCaspianShelf. According to PSA, exploration period made up 6 years from the date of the PSA coming into effect with the right of prolongation for 2 years, development and production period – 20 years from the date since commercial opening at the Contractor site with admission for 2 prolongations in 10 years.

In January 1998, Production Sharing Agreement in respect of the Karachaganak field came into effect.
On 14 July 1998, drilling of the first oil well began in the Kazakhstan’s sector of the Caspian shelf. The well was drilled by Kazakhstan-American joint venture Arman in the locality «Mertvy Kultuk». An artificial island – berm was specially built at the shoal for well drilling.
In 1998, by the initiative of the President N. Nazarbayev the Council of foreign investors was founded, comprising of heads of all largest oil companies working in Kazakhstan.

In May 1999, construction of the pipeline of the Caspian Pipeline Consortium began.
In June 1999, in Astrakhan a floating drilling barge «Sunkar» was floated off by «Astrakhanskiy korabl».
On 12 August 1999, OKIOK began drilling the first exploring well «Eastern Kashagan-1» at the Kazakhstan shelf of the Caspian Sea.
In September 1999, in Atyrau 100th anniversary of oil production in Kazakhstan was celebrated.

In February 2000, KazTransOil founded a subsidiary structure - KazTransGas. In summer 2000, KazTransGas took complete possession of the southern power system and gas transport system of the republic.
Discovery of the large oil field at the shelf of the Northern Caspian Sea (Kashagan) became the most important event of 2000 in Kazakhstan.
In June 2000, Kazakhstan represented by the National company Kazakhoil sold to Chevron company 5% of the share in joint venture Tengizchevroil for 450 mln. US dollars reserving for itself blocking minority ownership (20%).
In July 2000, KazTransGas began developing the fields of Amangeldy group in Zhambyl oblast.
In November 2000, the last joint of the CPC pipeline was welded which connected the Tengiz field with the marine terminal in Novorossiysk port.
In 2000, in accordance with the Decree of the President «National fund» was created to accumulate financial resources for future generations, as well as to reduce dependence of the country’s economy from impact of adverse external factors and the current situation of the world prices. Assets of the Fund are formed by cash assets incoming from large enterprises of the raw sector of Kazakhstan (mainly, oil companies), and investment income accrued on these amounts.

In February 2001, the Italian group of companies ENI was chosen as a single operator of development of coastal fields of Kazakhstan at the Northern Caspian Sea.
On 26 March 2001, in Atyrau oil pumping into the pipeline system of CPC «Tengiz-Novorossiysk» began. About 1 mln. tons of oil are necessary for filling the 1480-kilometer pipeline.
On 2 May 2001, the National company on management of main oil- and gas pipelines «Transport Nefti I Gaza» was founded by the resolution of the Government of Kazakhstan. The state-owned share holdings of KazTransOil and KazTransGas were conveyed to the new company.
On 3 August 2001, the Agreement of the Caspian pipeline consortium (CPC) on oil transportation was approved in Moscow.
From 30 August till 2 September 2001 in Aturau oblast the 90th anniversary of the oldest oil field Dossor was celebrated. Stable oil production at this field has been conducted since 1911.
On 28 November 2001, the first tanker with the Tengiz oil came out from the Black Sea port Novorossiysk.

National company KazMunayGas JSC with 100% share of the state was founded by the Decree of the President of the RoK as of 20 February 2002 with the purpose to increase efficient and transparent development of oil and gas complex and to protect interests of Kazakhstan in the oil and gas sector. NC KazMunayGas is a successor of National oil and gas company Kazakhoil CJSC and NC Transport Nefti I Gaza CJSC.

On 3 May 2002 – N. Nazarbayev and V. Putin signed a historical document – Protocol of the Agreement between Russia and Kazakhstan on delimitation of the northern part of the Caspian Sea.

On 23 May 2002, construction of the oil pipeline «Kenkiyak – Atyrau» began.

On 16 May 2003, the State program of development of the Kazakhstan sector of the Caspian Sea (KSCS) was approved.

In August 2003, N. Nazarbayev took part in the ceremony of the first oil start from the Karachaganak field into the CPC export pipeline.

In August Karachaganak Integrated Organization (KIO) put into operation a new complex on raw processing and a pipeline connecting the Karachaganak field with the CPC oil pipeline. The processing complex includes plants on receiving stable condensate and on injecting gas surplus back into formation.

In the end of December 2003, KazMunayGas and LUKoil have signed PSA on development of sections Atash and Tyub-Karagan in the Kazakhstan sector of the Caspian Sea.

On 9 January 2004, Kazakhstan-Russian agreements were signed on perspective sea projects Tyub-Karagan and Atash at the Caspian Sea.

In October 2004, construction of the oil pipeline «Atassu – Alashankou» (Kazakhstan-China) began.

In this year the bank of oil quality was created in Kazakhstan. The hydrocarbons database of the companies operating in Kazakhstan allows to identify oil batches at the different stages of its transportation, transshipment, storage.

In March 2005, NC KazMunayGas acquired half of the share of British Gas in the Northern-Caspian project equal to 8.33%.

In May 2005, a ceremony of acceptance of the oil tanker «Astana» was held in Aktau and marked beginning of creation of the marine fleet of Kazakhstan.

In June 2005, KazTransGas JSC acquired 100% share of Almaty Power Consolidated JSC, also a memorandum on acquisition of 100% share of the Georgian gas transport company Tbilgas was signed.

On 6 July 2005, PSA on «Kurmangazy» and an Agreement on joint activity were signed between Offshore Oil Company KazMunayTeniz JSC and RN-Kazakhstan LLC.

On 11 November 2005, medium-term agreements for transportation of Central Asian and Russian gas via the territory of Kazakhstan during 2006-2010 were concluded with Gazprom OJSC.

On 12 May 2006, in Atyrau with participation of the Head of the State a ceremony of completion of the project on Atyrau refinery reconstruction and launching new plants of the refinery was held.

In July 2006, there were concluded deals on acquisition by NC KazMunayGas JSC of 50% participation share in JV KazGerMunay LLP and 33% share of PetroKazakhstan.

On 20 July 2006, commercial operation of the oil pipeline «Atassu-Alashankou» (Kazakhstan-China) began.

In October 2006, shares of KazMunayGas Exploration Production JSC were floated at London stock exchange.

IPO Issue by KazMunaiGas EP JSC.
The solemn ceremony of completion of the Atyrau Refinery reconstruction project and launch of new units of the refinery was held in Atyrau with the participation of the Head of the State. The transactions on acquisition by JSC NC "KazMunayGas" of the 50-percent participatory interest in LLP "JV "Kazgermunay" and 33% of PetroKazakhstan's shares were made in July, 2006. Commercial operation of the Atasu-Alashankou (Kazakhstan-China) oil pipeline started on 20 July 2006.

January 11, 2007, there was completed the transaction on acquisition of the 50% of equity stake of the Naftrans Capital Partners Ltd. (a part of the Batumi Industrial Holdings Limited) which owns 62% of the Batumi Oil Terminal. The transaction amounted to $62 million. The Batumi terminal became the first foreign transshipment asset of Kazakhstan providing access to international waters.

July 11, 2007, on parity basis the KazMunayGas, jointly with the China National Petroleum Company International, have bought in the 100% equity of the company Valsera Holdings B.V. which is the parent company of the LLP «PetroKazakhstan Oil Products» (Shymkent Refinery).

August 24, 2007, there was signed a contract on purchase by the JSC Trade House KazMunayGas” of the 75% equity of the company Rompetrol Group N.V. The transaction amounted to $1.6 billion. The rest 25% of the equity were bought in June 2009.

November 8, 2007, there was signed an agreement on basic principles of construction and operation of the gas pipeline Kazakhstan-China, between the JSC NC KazMunayGas and the China National Oil and Gas Corporation. August 18, 2007, there was signed an agreement on cooperation in construction and operation of the gas pipeline Kazakhstan-China, between the Government of the Republic of Kazakhstan and the Government Chinese People’s Republic.

December 29, 2007, the Ministry of Energy and Mineral Resources of the Republic of Kazakhstan and the JSC National Company KazMunayGas signed an Agreement on section “H” production sharing.

The transaction on acquisition of the 100% block of shares of Batumi Industrial Holdings Limited, owning the Batumi Oil Terminal and port was completed.

Acquisition of BP's participatory interest in Kazakhstan Pipeline Ventures approved. Agreement with Central Asia Petroleum Ltd. on acquisition of 50%+2 voting shares of JSC "MangistauMunaiGaz" signed.

100 percent of the ownership equity of KazMunaiGaz Finance Sub B.V. sold in the favour of Cooperatieve KazMunaiGaz PKI U.A.

Decision on sale of the 100% block of shares of JSC "international Airport Atyrau" in exchange for the 50% block of shares of JSC NMSK "Kazmortransflot" between JSC NC "KazMunayGas" and JSC NWF "Samruk-Kazyna" made.

The transaction on acquisition of the 100-percent block of shares of MangistauMunaiGaz closed in November, 2009.

KazMunayGas completed the acquisition of 25% of The Rompetrol Group NV (TRG) shares, earlier held by Rompetrol Holding SA, on 24 June 2009.

1st line of the Kazakhstan-China gas pipeline commissioned.

As part of the high-quality road bitumens production project, KMG purchased on the exchange by way of open bidding a 50% block of shares of the Kazakhstan Petrochemical Industries JSC on 27 February 2009.

in accordance with resolution No.12/2010 of 27 Sep 2010 of KMG's BD, KMG transferred the 100% block of shares of JSC "D.V. Sokolsky Institute of Organic Catalysis and Electrochemistry", 100% block of shares of JSC "A.B. Bekturov Institute of Chemical Science" as payment for KBTU's shares.

The agreement signed with KMG NC on acquisition by KMG EP of the 50% interest in the "Kazakhoil Aktobe" LLP (KOA), 51% interest in the "Kazakhturkmunai" LLP (KTM) and 50% interest in Mangistau Investments B.V. (MIBV), owning 100% of the Mangistaumunaigas JSC (MMG) shares, in the manner prescribed by the laws.

A subsidiary of JSC NC "KazMunayGas" - "PSA" Limited Liability Partnership - established on 25 May 2010.

LLP "BeineuMunayGas" incorporated in the village of Beineu, Mangistau oblast on 30 Nov 2010, for transfer to temporary possession and use of the contract area and property in order to ensure continuous process flow at the Tolkyn and Borankol deposits in the Mangistau oblast, during the term until the property is transferred to a new subsoil user.