Kazakhstan started to mine oil in the beginning of 20th century. There were no national oil mining companies as KazMunayGas because Kazakhstan hadn't got its independence at that time. But, the history of this very company began from these industrial experiences.

At the present time, KazMunayGas provides 27% of the total amount of oil mining and 14% of gas in the territory of Kazakhstan. State-owned oil and gas company has staff with 80 000 employees all over Kazakhstan. KMG is one of the largest employers in our country.

[caption id="attachment_37784" align="alignnone" width="900"] Photo archive of KazMunayGas[/caption]

JSC KazMunayGas is formed by merging of national companies KazakhOil and Transport of Oil and Gas in 2002. Development strategy of KazMunayGas for 2012-2022 is aimed to maximize shareholder value by increasing a long-term cost of assets and by supporting Kazakhstan economy in modernization and diversification oil domestic oil sector.

In 2004, KazMunayGas became the largest national company after merging JSC UzenMunayGas and EmbaMunayGas to its own assets.

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KazMunaiGas started to work on its first project in the Caspian Sea as soon as Nursultan Nazarbayev, the president of Kazakhstan, and Vladimir Putin, the head of Russian Federation, signed the historical document for agreement in using the northern part of the sea. National Oil company started to construct an oil pipeline from Kenyak to Atyrau on May 23, 2002.

The state-owned company made several agreements on the acquisition of 100% of the equity stake of the foreign company like Batumi Industrial Holdings Limited in 2008. KazMunayGas and Central Asia Petroleum Ltd are signed to the document about agreement on the acquisition of 50% and two extra voting shares of JSC MangistauMunayGaz by the financial support of Samruk-Kazyna, national welfare fund of Kazakhstan.

KazMunayGas became an owner of Mangistaumunaygas by acquiring 100 percent equity stake in the Aktau-based company in November 2009.

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In the end of 2009, Kazakhstan began to export oil to China via oil pipeline which was built by a project of KazMunayGas.

KazMunayGas management tends to buy other private companies, which work in the territory of Kazakhstan since the national company was formed in 2002. The main purpose of Kazakh Government is to unite all oil supply enterprises in an oil sector of our country in order to centralize revenues of domestic oil and gas industry. Nowadays, KazMunayGas has subsidiaries like:

• KazMunayGas Exploration Production (KMG EP) – onshore oil and gas exploration and production

• KazTransOil – oil transportation

• Port of Batumi – Georgian logistics company

• KazMunayGas Refining and Marketing – oil refining and marketing

• Rompetrol (75%) – A Romanian oil company

• Atyrau Refinery – oil refining

• Kazmortransflot – shipping by tankers

• Tengizchevroil (20%) – oil joint venture with Chevron, Lukoil, and Exxon-Mobil

• KazMunayTeniz – offshore oil and gas exploration and production

• Atyrau International Airport

• KazTransCom Telecommunications Company – telecommunication services

• KazMunayGas Services Compass – Catering and Support Services

• KazTransGas – gas transportation. Gazprom is its principal customer, accounting for 64% of its consolidated revenue in 2011, down from 75% in 2010.

• Eurasia-Air Helicopter Company – helicopter services

Moreover, the company has stakes in LLP Kazgermunay JV, JSC Karazhanbasmunay, and PetroKazakhstan Inc. It's two noted producing fields are Uzenmunaygas and Embamunaygas.

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The largest national company of Kazakhstan operates 2 oil refineries in the country. These oil refining are located in Pavlodar and Atyrau cities. Pavlodar refinery work up about 160 000 barrel of oil per day while Atyrau's one has a product supply in an amount of 104 000 barrels per day.

KazMunayGas has a US $1.7 billion plan for the modernization of the Atyrau refinery. In August 2012, it obtained a US $297.5 million loans 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.

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KazMunayGas Exploration Production has its equity listed in the form of common shares and global depositary receipts on the Kazakhstan Stock Exchange and the London Stock Exchange, respectively.