KazMunayGas Responds to Reports on Potential ANPZ Stake Transfer to Tatneft

National oil company KazMunayGas (KMG) has issued a statement addressing reports that it may transfer a stake in the Atyrau Oil Refinery (ANPZ) to Russia’s PJSC Tatneft, Orda.kz reports.

Reports surfaced online earlier this week claiming that KMG was negotiating the handover of ANPZ to Tatneft.

The Russian company had previously expressed interest in the refinery in 2022, offering to take it under trust management following an audit.

KazMunayGas neither confirmed nor outright denied the reports.

In a cautious and carefully worded comment, the company noted that the idea of privatizing Kazakhstan’s refineries — including those in Atyrau and Pavlodar — originally came from the Agency for the Protection and Development of Competition (AZRK).

KMG is analyzing this issue, taking into account that preparation for such decisions requires considerable time – both at the level of corporate decisions and in terms of technical and economic aspects. In practice, such processes take several years. KMG is actively developing the petrochemical industry in the country and is open to cooperation with partners for the joint construction of the entire production chain. In this regard, various companies from near and far abroad are being considered, including PJSC Tatneft,
the company stated. 

KMG further emphasized its ongoing cooperation with Tatneft, including knowledge exchange related to specific installations and technologies. The companies are also reportedly working together on value-added production based on raw materials from ANPZ.

Companies included in the PAO Tatneft group have achieved high results in operational efficiency of production and the release of high-value petrochemical products. PJSC Tatneft also expressed interest in investing in new petrochemical projects directly related to the production activities of LLP ANPZ, in particular, in the production of terephthalic acid and polyethylene terephthalate (PTA and PET),
 KMG added.

The national company concluded by noting that all three of Kazakhstan’s oil refineries are demonstrating positive performance, with a total of 17.44 million tons of oil processed last year.

Read more about potential privatization in this article.

Original Author: Nikita Drobny