OREANDA-NEWS. January 18, 2010. An extended meeting of the collegiate panel of the RoK Ministry of Energy and Mineral Resources was held in Astana on 15 January of this year, where the results of the financial and economic activities of JSC NC "KazMunayGas" for 2009 were summed up. RoK Prime Minister Karim Massimov, RoK Minister of Energy and Mineral Resources Sauat Mynbayev, Chairman of the Management Board of the “Samruk-Kazyna” SWF” JSC Kairat Kelimbetov, deputies of the RoK Parliament and representatives of the governmental agencies concerned have taken part in the meeting.

As Chairman of the Management Board of JSC NC "KazMunayGas" Kairgeldy Kabyldin mentioned in his speech, in accordance with the company’s Long-Term Development Strategy, in 2009 KMG focused its efforts on development of the production capacity, transportation infrastructure, implementation of rapid anti-recession measures.

For example, for the purposes of the instructions from the RoK Government, in 2009 JSC NC "KazMunayGas" cut its general and administrative expenses by 32 percent, or by 60.4 bln. KZT. Levels of management and the staff numbers of the executive and administrative personnel were reduced, meanwhile, production and engineering-and-technical jobs were retained.

Work on improvement in the corporate procedures and increasing transparency in accordance with the international principles and standards was continued. In December, 2009, international agency Standard&Poor`s assigned JSC NC "KazMunayGas" GAMMA 5 corporate governance score.

Notwithstanding the complex situation on the international markets, the above-said anti-recession measures made it possible to retain positive momentum of the key production and financial performance indicators.

According to the most recent data, the consolidated uplift of oil and gas-condensate in the KMG group of companies amounted to over 18.7 mln. tons, exceeding the last year’s figure by 4 percent.

The volume of oil transportation by main pipelines reached 64 mln. tons, which is 5 percent higher than the level of 2008. Oil transportation volumes by the maritime fleet amounted to 7.3 mln. tons, gaining 27 percent.

In compliance with the instructions of the country’s government, outstripping growth rates of the oil refining were achieved. According to the most recent data, 12.1 mln. tons of crude were processed in 2009, which is 17 percent higher than the level of 2008.

90.9 bcm have been flown during the reporting period, which is 22 percent lower compared to 2008. The shrinkage was the result of external reasons – stoppage of the Turkmen gas transit and the lack of proper regulation of the Russian-Turkmen relations in the gas delivery matters.

KMG’s consolidated income exceeded 2.1 trn. KZT in 2009, which is 18.4 higher than the figure planned.

The consolidated profit reached 148.1 bln. KZT, exceeding the plan by 31 percent. Meanwhile, over 341.2 bln. KZT were contributed to the country’s budget in the form of taxes and other mandatory payments.

142.3 thousand tons of economy-priced diesel (55,000 KZT, with the market price of 61,500 KZT for a ton) were supplied to agricultural producers for performance of the sowing and harvesting works. 139.5 thousand tons of economy-priced fuel oil (49,000 KZT, with the market price of 70,000 KZT for a ton) were offloaded from the Atyrau Refinery for the heating purposes.

Following the results of the additional measures taken in 2009, the share of the Kazakh content for the KMG group of companies in the total volume of the agreements made on delivery of goods and services amounted to 79.6 percent, or 343.3 bln. KZT. This year the Program of Assistance by JSC NC "KazMunayGas" to Development of the Petroleum Mechanic Engineering in the Republic of Kazakhstan, intended for use up to 2012, will be implemented.

As related to the implementation of the investment strategy, transactions on acquisition of the assets of JSC “Mangistaumunaigas”, LLP “Pavlodar PC Plant”, “The Rompetrol Group” etc. were closed.

The Company continues consistent diversification of the transportation directions. During the reporting period the “Kenkiyak-Kumkol” section of the “Kazakhstan-China” Oil Pipeline and the “Kazakhstan-China” gas pipeline, that is a part of the "Turkmenistan-Uzbekistan-Kazakhstan-China” main route for gas transportation, were brought on line. The resolution on phased implementation of the Caspian Pipeline Consortium (CPC) expansion project was passed.

The Comprehensive Plan to Develop the Refineries of the Republic of Kazakhstan for 2009-2015 approved by the RoK Government is being implemented on schedule. Contract for construction of the aromatics production complex at the Atyrau Refinery with the total value of 1 billion 47 mln. US dollars has been entered into with the Sinopec Engineering company.

In compliance with the Long-term Development Strategy, in 2010 KMG will continue systemic work on increasing the added value, forming an efficient investment portfolio and integrated growth in the five priority business areas.