View source for KazMunayGas

{{prose|date=April 2014}}
{{Infobox company
| name     = KazMunayGas
| logo     = [[File:KazMunayGas.svg|frameless]]
| image      = 
| type     = State-owned
| genre            =
| foundation       = 2002
| founder          =
| location_city    = [[Astana]]
| location_country = [[Kazakhstan]]
| origins          =
| key_people       = Chairman — Umirzak Shukeyev
| area_served      =
| products         = oil<br/> natural gas
| revenue          = US$6.78&nbsp;billion (2005)
| operating_income =
| net_income       = US$1.15 billion (2005)
| num_employees    = over 30,000
| parent           = [[Samruk-Kazyna]]
| divisions        =
| subsid           =
| owner            =
| slogan   =
| homepage         = [http://www.kmg.kz www.kmg.kz]
| dissolved       =
| footnotes        =
}}

'''KazMunayGas (KMG)''' is the state-owned oil and gas company of [[Kazakhstan]].<ref name=FLOAT>[http://www.ft.com/cms/s/7b3dedda-3bb1-11db-96c9-0000779e2340.html Kazakhstan state oil unit float seeks to raise more than £1bn], by Paul J Davies, Financial Times. 4 September 2006</ref> It was founded in 2002 by merging Kazakhoil and Oil and Gas Transportation.<ref name=KMG>[http://www.kmg.kz/main.php?page=inc/posted&mid=4&showm=3&type=menu&lang=eng Company Profile of KazMunayGas], KazMunayGas corporate website</ref>

==Subsidiaries==
Main subsidiaries of KazMunayGas are:

* [[KazMunaiGas Exploration Production (AO)]] (KMG EP)''' – '''onshore oil and gas exploration and production'''
* [[Tengizchevroil]] (20%) – oil joint venture with [[Chevron Corporation|Chevron]], [[Lukoil]] and [[Exxon-Mobil]]
* [[KazTransOil]] – oil transportation
** Port of Batumi – Georgian logistics company
* KazTransGas – gas transportation. [[Gazprom]] is its principal customer, accounting for 64% of its consolidated revenue in 2011, down from 75% in 2010.<ref>{{cite news|title=Fitch Rates KazTransGas & Intergas Central Asia at "BB+"|url=http://www.satrapia.com/news/article/fitch-rates-kaztransgas-intergas-central-asia-at-bb/|accessdate=3 September 2012|newspaper=The Gazette of Central Asia|date=3 September 2012|publisher=Satrapia}}</ref> 
* KazMunayGas Refining and Marketing – oil refining and marketing
** [[Rompetrol]] (75%) – A Romanian oil company<ref name=upstream1>
{{cite news
 | url = http://www.upstreamonline.com/live/article144530.ece
 | title = KazMunaiGaz gets nod for Rompetrol buy
 | newspaper = [[Upstream (newspaper)|Upstream Online]]
 | publisher = NHST Media Group
 | date = 2007-11-19
 | accessdate = 2008-03-15}}
</ref>
** Atyrau Refinery<ref name="kazworld">[http://kazworld.info/?p=58130 Company Overview of Atyrau Refinery LLP]</ref> – oil refining
* Kazmortransflot – shipping by tankers
* KazMunayTeniz – offshore oil and gas exploration and production
* Atyrau International Airport
* Eurasia-Air Helicopter Company – helicopter services
* [[KazMunaiGas Services Compass]] – Catering and Support Services 
[[KazMunaiGas Exploration Production (AO)]] has its equity listed in form of common shares and [[Global Depositary Receipt|global depositary receipt]]s on the Kazakhstan Stock Exchange and the [[London Stock Exchange]], respectively.<ref name=oilvoice>{{cite news | url = http://www.oilvoice.com/n/JSC_KazMunaiGas_Begins_Trading_on_the_Kazakhstan_Stock_Exchange/74a40ad0.aspx | title = JSC KazMunaiGas Begins Trading on the Kazakhstan Stock Exchange | publisher = Oil Voice |date = 2006-10-05 | accessdate = 2008-03-15}}</ref>

The company has stakes in LLP Kazgermunai JV, JSC Karazhanbasmunai and PetroKazakhstan Inc. Its two noted producing fields are Uzenmunaigas and Embamunaigas.<ref>[http://www.kmg.kz/en/press/company_news/press_release/5283?phrase_id=80482 "JSC KazMunaiGas Exploration Production 2010 Financial results"], company press release, 03.03.2011. Retrieved 2011-09-01.</ref>

==Oil refineries==
KazMunayGas operates 2 oil refineries in Kazakhstan:
* [[Pavlodar Refinery]]: {{convert|162600|oilbbl/d|m3/d|abbr=on}}
* [[Atyrau Refinery]]:,<ref name="kazworld"/> {{convert|104400|oilbbl/d|m3/d|abbr=on}}

KazMunayGas has a US $1.7 billion plan for the modernization of the Atyrau refinery.<ref name="kazworld"/> In August 2012, it obtained a US $297.5 million loan from the Japan Bank for International Cooperation and the Bank of Tokyo Mitsubishi a deep oil refining complex at the Atyrau Oil Refinery. This loan followed a contract awarded to [[Marubeni]] to reinforce the production of oil products to suit European environmental standards.<ref>{{cite news|title=Japanese Banks Provide $297.5 million Loan to Atyrau Oil Refinery|url=http://www.satrapia.com/news/article/japanese-banks-provide-2975-million-loan-to-atyrau-oil-refinery/|accessdate=15 August 2012|newspaper=The Gazette of Central Asia|date=15 August 2012|publisher=Satrapia}}</ref>

== Shareholders and Management ==
90% of the shares of the company are managed by [[Samruk-Kazyna|National Welfare Fund "Samruk-Kazyna"]]. 10% of KMG shares belong to the National Bank of the Republic of Kazakhstan.<ref>{{Cite news|url=https://tengrinews.kz/money/10-protsentov-aktsiy-kazmunaygaza-prodanyi-na-KASE-278890/|title=Tengrinews.kz|last=|first=|date=|work=|access-date=|via=}}</ref>

Chairman of the Board of Directors - Frank Kuijlaars, Independent Director , Chairman of the Board - Sauat Mynbayev Muhametbaevich.<ref>{{Cite web|url=http://kmg.kz/en/about/directors/|title=KazMunayGas official website|last=|first=|date=|website=|publisher=|access-date=}}</ref>

==2011 strikes==
{{main article|2011 Kazakhstan clashes}}

In May 2011 KazMunayGas was hit by a strike of workers demanding higher wages and better conditions.<ref>[https://www.bloomberg.com/news/2011-05-26/kazmunaigas-says-workers-strikes-have-little-impact-on-output.html KazMunaiGas Says Workers’ Strikes Have Little Impact on Output], Bloomberg, 26 May 2011</ref>

In August, 2011, the company was four months into a wildcat strike at Uzenmunaigas.<ref name=MW01/> On 2 August, Zhaksylyk Turbaev, a trade union member working for an oilfield service company in [[Zhanaozen]], was killed.<ref name=SRI01/> On 24 August 2011, the 18-year-old daughter of an elected member of the strike committee was found dead and apparently murdered, according to the striker. Zhansaule Karabalayeva was found in the countryside near the oilfield in Western Kazakhstan with multiple injuries, according to her father, Kurdaibergen Karabalayev, in a telephone interview on 27 August. [[Bulat Abilov]], an opposition politician, said "I don't think this is unconnected to the strike." "The local chief of police, quoted in a local paper, said the killing was not related to the strike. The company spokesman declined comment," according to one report.

On 31 August, Interior Ministry spokesman Nurdilda Oraz said in the Kazakh capital, [[Astana]], that the police "did not associate" the "common crime" of Karabalayeva's murder with her father's activities. In the same report, the KMG EP press office said the father was not the trade union chairman and had never been a strike activist but worked as an engine driver for the company until 27 July this year.<ref>[http://www.interfax.kz/?lang=eng&int_id=expert_opinions&news_id=509 "Girl's murder in Zhanaozen not connected to her father's activities - Police"], Interfax-Kazakhstan, 31 August 2011. Retrieved 2011-09-20.</ref>

Also in August, a labor lawyer, Natalya Sokolova, was sentenced to six years in jail for 'organizing illegal gatherings' at the smaller Karazhanbas field, which was also on strike.<ref>[http://www.eurasianet.org/node/64310 Kazakhstan: Labor Dispute Dragging Energy Production Down], Eurasianet.org, 23 October 2011</ref>

Earlier, in July, the singer [[Sting (musician)|Sting]] had cancelled a concert after he was briefed on the strike by [[Amnesty International]].<ref>[http://www.eurasianet.org/node/64310 Kazakhstan: Labor Dispute Dragging Energy Production Down], BBC News, 4 July 2011</ref>

These labour strikes were causing a 6% output drop in KazMunayGas production, according to a company spokesman.<ref name=MW01>Pala, Christopher, [http://www.marketwatch.com/story/daughter-of-kazakh-strike-leader-found-dead-2011-08-27?Link=obinsite "Daughter of Kazakh strike leader found dead"], ''MarketWatch'', 27 Aug. 2011 11:34 am EDT. Retrieved 2011-09-01.</ref>

On 26 August, KMG EP fired around 900 striking workers and replaced them with new recruits from the area. The company said that production at Uzen had stabilized. Karazhanbasmunai, a joint venture between KMG EP and China’s [[Citic]], also fired around 500 workers.<ref name=SRI01/>

Until mid-September 2011, daily protests by angry protestors, many of whom used to work at Uzen, continued in Zhanaozen's main square "in a rare display of popular dissent".<ref name=SRI01>Nuttall, Clare, [http://silkroadintelligencer.com/2011/09/14/kazakhstan-simmers-as-striking-oil-workers-sacked/ "Kazakhstan simmers as striking oil workers sacked"], ''business new europe'' via ''silkroadintelligencer.com'', 14 September 2011. Retrieved 2011-09-20.</ref>

The unrest has persisted, with violence erupting on independence day, 16 December 2011, killing 16 and leaving about 100 injured as police opened fire on the demonstrations.<ref name="bloomberg.com">[https://www.bloomberg.com/news/2012-01-09/kazmunaigas-ep-oil-output-drops-as-labor-strikes-curb-operations.html KazMunaiGas EP Oil Output Drops as Labor Strikes Curb Operations], Bloomberg, 9 January 2012</ref> Army units and [[armoured personnel carriers]] were sent in by the Interior Ministry to quell the ensuing protests, which saw government and Uzenmunaigaz buildings set alight by demonstrators.<ref>[https://www.nytimes.com/2011/12/17/world/asia/deaths-in-rare-violence-in-kazakhstan.html?_r=2&ref=world "At least 10 die as police clash with strikers in Kazakhstan"], New York Times, 16 December 2011. Retrieved 2011-12-17.</ref><ref>[http://rt.com/news/kazakhstan-riot-violence-army-027/? "Kazakhstan quells riots amid news blackout"], Russia Today, 16 December 2011. Retrieved 2011-12-17.</ref>

The labor conflict resulted in the resignation of KazMunaiGas EP Chief Executive Officer Askar Balzhanov on 22 Dec.. President Nursultan Nazarbayev also replaced the head of parent company KazMunaiGaz National Co., Bolat Akchulakov, and fired his own son-in-law Timur Kulibayev, who headed the country’s [[sovereign wealth fund]].<ref name="bloomberg.com"/>

==See also==
{{Portal|Kazakhstan|Energy}}
* [[Energy policy of Kazakhstan]]

==References==
{{Reflist|2}}

==External links==
*[http://www.kmg.kz KazMunayGas corporate website]
*[http://www.kmg.kz/en KazMunayGas corporate website in English]
*[http://www.kmgep.kz/ KazMunaiGas Exploration Production]
*[http://silkroadintelligencer.com/2007/09/12/kazmunaigas-kazakhstans-national-oil-company/ KazMunaiGas: Kazakhstan’s National Oil Company, ''silkroadintelligencer.com'', 12 September 2007]
{{Use dmy dates|date=September 2011}}

[[Category:Oil and gas companies of Kazakhstan]]
[[Category:Oil pipeline companies]]
[[Category:National oil and gas companies]]
[[Category:Government-owned companies]]
[[Category:Government-owned companies of Kazakhstan]]
[[Category:Companies based in Astana]]
[[Category:Energy companies established in 2002]]
[[Category:Non-renewable resource companies established in 2002]]
[[Category:2002 establishments in Kazakhstan]]
[[Category:Kazakhstani brands]]