By Mariya Gordeyeva
ASTANA Oct 3 Kazakhstan's oil pipeline monopoly
plans to raise more than $100 million through an initial public
share offering (IPO) as part of the central Asian country's
"people's IPO" programme, the deputy head of its parent company
KazTransOil, 100 percent owned by state oil and gas company
KazMunaiGas, will be among the first state-run
enterprises to list on the local stock exchange in a drive to
attract ordinary Kazakh investors. No date has been set for the
"It's a big political task. We want the people of Kazakhstan
to participate in our prosperity," Daniyar Berlibayev, the
deputy chief executive of KazMunaiGas, said.
Asked how much KazTransOil planned to raise in the offering,
he said: "It will be more than $100 million."
Kazakhstan, central Asia's largest economy, plans to
invigorate the small local stock market and to raise about $500
million from the first round of IPOs, with between 5 percent and
15 percent of the companies' shares being sold to retail
investors and local pension funds.
The government had planned to launch the people's IPO by the
third quarter of this year, but it postponed the first listings
because of the volatile global market. State grid company KEGOC
will also be among the first to take part in the programme.
The government envisages the jewels in the Kazakhstan's
crown - KazMunaiGas as well as uranium miner Kazatomprom - will
go public after 2015, potentially raising billions of dollars
via sales to local and foreign investors.
Kazakhstan, which holds 3 percent of the world's recoverable
oil reserves, is the largest former Soviet oil producer after
Russia. KazTransOil shipped 66.9 million tonnes of crude through
its pipelines last year, most of the oil exported by Kazakhstan.
In an interview with Reuters, Berlibayev said that
KazMunaiGas - the second-largest oil producer in Kazakhstan
after the Chevron-led Tengizchevroil joint venture -
would record only a modest increase in crude oil production this
year and next.
He said that the state company forecasts crude oil
production of 21.9 million tonnes this year and 22 million
tonnes in 2013.
Longer term, KazMunaiGas has more ambitious plans for a 60
percent increase in output by 2022. Chief Executive Lyazzat
Kiinov said on Tuesday that crude oil production should reach
35.4 million tonnes by 2022.
More assertive state policy has helped KazMunaiGas to
acquire stakes in foreign-owned consortiums developing major oil
fields in the country.
Its 10 percent stake in the Karachaganak field, acquired in
December, will help the state company to maintain relatively
stable output in the next two years and offset a drop in
production at ageing fields in western Kazakhstan, Berlibayev
The company's London-listed subsidiary, KazMunaiGas
Exploration Production (KMGEP), will produce slightly
less than the 13 million tonnes planned this year, Berlibayev
said, having failed to recover fully from a sharp drop in 2011.
KMGEP's output fell 7 percent to 12.3 million tonnes last
year because of technical difficulties at its Ozen and Emba
fields and a months-long strike that erupted into deadly clashes
in the nearby town of Zhanaozen in December.
The listed company is awaiting the transfer of onshore
assets owned by the parent, including the 50 percent stake in
MangistauMunaiGas acquired by KazMunaiGas in 2009. China's CNPC
owns the other 50 percent.
"MangistauMunaiGas remains our asset," Berlibayev said. "We
will take a decision (on transferring it to KMGEP) when we have
finalised the strategy for our oil production assets."