KMG Says Inclusion of KMG International In Privatization Plan Does Not Mean Sale

KazMunayGas has clarified that the inclusion of KMG International in the state privatization plan for 2026–2027 does not mean a sale has been approved, Orda.kz reports.

The national company stressed that it is not making any decisions regarding the sale of KMG International. The clarification followed after users noticed the asset listed in the National Privatization Office’s online listing.

The company emphasized that the privatization plan itself is still a procedural framework.

The list may include assets from different sectors, but this in itself does not automatically trigger a sale,
 KMG stated.

On the National Privatization Office website, KMG International NV appears among assets offered for potential sale.

The subsidiary consists of 28 companies in Romania, Switzerland, Bulgaria, Türkiye, Moldova, Georgia, and Kazakhstan — including the Petromidia and Vega refineries, a petrochemical complex, logistics infrastructure, and a retail network of more than 1,400 fuel stations.

The site indicates that if the asset is put up for privatization, it could be sold through a two-stage tender, an electronic tender, or a direct transaction, with the timeline listed as 2026–2027. Users are also given the option to “submit a request” to purchase.

KMG International has long been considered one of the most problematic holdings within KazMunayGas. Over two decades, the corporation invested roughly $7 billion into Romanian refining assets, yet never achieved the expected returns. 

An attempt to sell the business to China’s CEFC collapsed, and the asset has remained entangled in investigations, operational incidents, and financial controversy.

In early 2025, the national company considered purchasing a Lukoil refinery in Bulgaria — a deal estimated by Bloomberg at around $1 billion — which would have doubled KMG’s European refining capacity and weakened its dependence on domestic market regulation.

The company also denied speculation about talks with Lukoil regarding Karachaganak, saying no such negotiations are underway. At the same time, major upstream projects — Karachaganak, Tengiz, and the CPC — continue to operate outside of the sanctions landscape.

Original Author: Ruslan Loginov