Company Strategy

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.

KazMunayGas is focused on the core activities to create the value of petroleum industry

1. Oil and gas upstream
• Projects operator in Kazakhstan.
• Large projects co-operator in Kazakhstan and abroad.
2. Oil transportation
• Pipeline network operator in Kazakhstan.
• Shareholding partner in international pipelines and export routes
• Tanker fleet operator in the Caspian sea
3. Sales and marketing
• Oil export and import.
• International oil trade
4. Refining
• Refining operator in Kazakhstan.
• Refining operator abroad.
5. Petrochemistry
• Projects implementation within the state program Retail
• Retail network operator in Kazakhstan
• Owner/retail network operator abroad
6. Export /import, transportation and sales , gas transit
• Sole operator of gas transportation system of Kazakhstan
• Sole importer of gas to Kazakhstani market
• Sole exporter of Kazakhstan gas and gas exchange operator
• Operator of regional gas transportation systems and gas distribution network
• Owner and operator of thermal power plants

Aims and priorities in oil and gas upstream

1. To increase gas production volumes both domestically and regionally, make investments in Kashagan project, provide greater shares in the future projects
2. To develop technical and operational competence through creation of partnerships and joint-ventures, explore complex deposits on the shelf together with foreign partners
3. To increase the share of NC KazMunayGas JSC in oil and gas reserves of Kazakhstan, strengthen the role of KazMunayGas as an operator in the current and scheduled projects.
4. To increase efficiency of investments and control the cost price
5. To gain access to the projects and secure operator’s rights in the region, in particular in Turkmenistan, Azerbaidzhan, Uzbekistan and Russia.

Aims and priorities in gas transportation and marketing

• Become sole operator countrywide on transportation, transit, export and import of gas
• Develop and implement the projects of construction of new gas transportation systems
• Gas pipeline to transit gas to China
• The Caspian pipeline under condition of the maximum loading of the current transit facilities
• Provide sustainable gas supply to the domestic market via pipeline Beiney-Bozoi-Akbulak
• Increase reliability and profitability of gas distribution systems ( selective involvement in gas distribution and electricity-generating development projects )
• Foster achievement of high standards of production and profitability increase
• Aims and priorities in oil transportation
• Become the sole operator of domestic infrastructure to strengthen its own positions in relations with partners
• Expand and diversify export capacities to ensure long-terms export
• Construction and expansion of KCTS, СPC (Caspian pipeline consortium)
• Increase capacities of the Caspian tankers fleet
• Implement selective acquisition of partnership share in foreign petroleum assets to provide access to the end consumers markets
• Foster achievement of high standards of production and increase profitability
• Aims and priorities in the sphere of oil refinery, petrochemistry and oil and oil products marketing
• To strengthen positions at the domestic market
• Increase conversion depth and product quality ( Euro-3 by 2015)
• Increase the share at the retail market of Kazakhstan to 20%
• Foster achievement of high standards of production
• Provide implementation of petrochemistry complex construction within the state program
• Increase the value of assets “Rompetrol” and NC “KazMunayGas” JSC
• Provide further integration for “KazMunayGas”
• Develop competitiveness at the domestic market by taking advantage of domestic commercial and production competence