Today, a press briefing was held at the Samruk-Kazyna site with participation of Dauren Karabayev, the Deputy CEO of KazMunayGas for Economics and Finance. He spoke about the financial results of the work of the national company in January-June 2022. 

Revenues are growing due to oil prices

The company’s revenue for six months increased by 57.3% compared to the same period last year, to KZT4.2 trillion. According to Karabayev, the main reason for the growth of KMG financial indicators is the increase in world oil prices. According to the results of H1 2022, the average price of European Brent crude oil was 107.94 USD/bbl. This is 66% more than in the same period last year. Urals oil of the Russian brand has also increased in price, but it is much cheaper than Brent, on average 85 USD/bbl. 

A part of the KMG oil is traditionally supplied under the Russian brand, which negatively affects the company’s revenues. In addition, since July, KMG has been selling oil under its own Kazakh export brand KENKO. D. Karabayev stressed that it is traded more expensive than Urals, but lower than Brent. Against the background of favorable financial indicators, KMG, together with Samruk-Kazyna, is preparing for the company’s IPO, which will take place this year. 

Alternative oil supply routes

D. Karabayev said that the ongoing repair work on the oil pipeline of the Caspian Pipeline Consortium (CPC) does not affect the shipment and transportation of the KMG oil. 

In the first half of the year, the volume of oil transportation through the CPC even increased relative to 2021. At the same time, Kazakhstan is actively looking for alternative oil supply routes. Negotiations are underway with partners from Azerbaijan. Two directions of deliveries via the Baku-Tbilisi-Ceyhan oil pipelines to Turkey and Baku-Supsa to Georgia are discussed. 

Oil refining and diesel fuel

Journalists and the public were especially concerned about the situation with diesel fuel in Kazakhstan. According to D. Karabayev, all oil refineries (refineries) of KazMunayGas are operating normally and produce enough refined products, including diesel fuel. The manager noted that KMG cannot influence fluctuations in demand for petroleum products within Kazakhstan and in foreign countries.