Former Boranbayev-Owned Phystech II to Be Privatized

Phystech II, formerly owned by oligarch Kairat Boranbayev and currently managed by the Samruk-Kazyna fund, will be returned to private ownership, Orda.kz reports.

Prime Minister Olzhas Bektenov included it in privatization plans via decree. The updated list of large organizations marked for transfer to a competitive environment now includes Phystech II JSC, according to a document published on the government website on April 7.

Privatization is expected by the end of 2025. The options include a two-stage open tender, electronic auction, or direct sale.

Phystech II was one of the first assets transferred by Boranbayev to the state in October 2023. The company operates in the Severny Qarazhanbas oil field in the Mangystau region under a 25-year subsoil use contract. It was previously valued at 35.5 billion tenge and was held through Boranbayev’s KazTurboRemont group.

In April 2024, Orda.kz reported that while Boranbayev had transferred Phystech II to state control, he had not signed a deed of gift. The State Property Committee confirmed that procedures were underway to formalize the transfer. By August 2024, the company had officially become state property.

Following its transfer to the Samruk-Kazyna fund, top managers connected to Boranbayev were removed from the company’s leadership.

Original Author: Nikita Drobny