JSC Trade House KazMunaiGaz reports on the new development concept

One of the important changes is the company’s transformation into JSC KazMunayGas - Refining & Marketing.
The concept emphasizes in the form of strategic objectives and goals a few key focus areas of the KazMunayGas – Refining & Marketing company.
One of the top priorities in the downstream sector will be covering the requirements of the domestic market for oil products, among other things, through expansion of the filling stations network by means of acquisition, construction and franchising, as well as development of the bitumens and liquefied gas sales network.
Among other strategic objectives there are modernization of the refining capacity of Atyrau Refinery, Pavlodar Petrochemical Plant and ShNOS (ShymkentNefteOrgSintez), maximizing income from export oil operations, development of the transportation logistics, and development of the company’s foreign asset – Rompetrol.
The company also intends to extend the sales chain by means of transition to CIF contracts and development of the business of transshipment and storage of crude and oil products in ports and terminals.
"The company’s new vision is to reach the level of a high performance managing company ensuring oil refining and marketing. We have an intention to become the agent not only of state-owned oil, but of other resource holders as well. We strongly believe that the company will be able to offer favourable terms to potential suppliers, since we sell crude at the world prices", D. Berlibayev emphasized in his speech. – Among our customers there are Chevron, ExxonMobil, Shell, and even our daughter company Rompetrol is supplied crude at international quotations, - he added.
In this context, development of transportation logistics will be given the higher priority".
Development of this business will allow not only solving problems with the logistics of oil products from refineries to service stations, but will create new points of development for KazMunayGas – Refining & Marketing as well.
"The company’s plans include setting up joint ventures with shipping companies, and the priority for us in solving this task will be the maximum economic viability," - D. Berlibayev noted.
In accordance with the new development concept, the tasks as related to Rompetrol are as follows: completion of the modernization of the Petromidia Refinery, expansion of the service stations retail network, and increase in the efficiency of the marketing operations.
As part of the measures to increase the company’s management efficiency, a new organizational structure has been developed. Thus, the total headcount of KMG TH employees has been reduced from 170 to 145 people, and other general and administrative expenses have been optimized.