KazMunayGas JSC took a decision to conduct IPO of its oil producing daughter - the head of the national company

/INTERFAX-KAZAKHSTAN, July 5, 06/ - National oil-gas company of Kazakhstan KazMunayGas took a decision on initial public offering (IPO) of its oil producing daughter - Exploring Mining KazMunayGaz JSC, informed the president of KazMunayGas Uzakbay Karabalin. "Today Council of directors of the company took a decision to conduct initial public shares offering of our daughter company Exploring Mining KazMunayGas - IPO. Before this decision was approved by Council of directors of state holding Samruk," - he confirmed at press briefing on Wednesday in Astana after signing of document pack on purchase of 33% stake in PetroKazakhstan from CNPC and establishing joint enterprise on the basis of Shymkent oil processing plant on an equal footing. U. Karabalin did not say in details about coming IPO, including terms issue. "Unfortunately, according to offering rules, we can not disclose information, and while preparing for the IPO issue, we will keep you in course within list of requirements of funds market," - he promised. Moreover, the head of KazMunayGas explained that IPO is needed for the company for financing purchase of oil-gas assets in Kazakhstan and abroad, and also their investments projects. "In order to actualize all oil-gas investments projects of the company, it is needed to manage with big funds and investments. in connection with this we examined various models of finance borrowing, including offering of the announced shares of Exploring Mining KazMunayGas on funds markets," - U. Karabalin said. He noted "currently further growth of oil producing by the company Exploring Mining KazMunayGas is restricted due to the following, that we mostly work on old oil field, and our resources are being exhausted bit by bit, and the company has to increase annually expenditures on support of oil producing ". "In order to avoid fall of oil producing volume Exploring Mining KazMunayGas keeps focus on exploring near located fields, and also on searching alternative ways of reserves enlarging by means of purchase of extra assets in Kazakhstan and abroad," - U. Karabalin said. U. Karabalin said that decision on IPO was taken in connection with successful experience of public shares offering from the side of big Russian and Kazakhstan companies, including Rosneft Company. In the end, he resumed, together with above mentioned reasons future IPO will be accomplished in order to create "conditions for local pension funds, banks and just citizens of Kazakhstan on purchase of shares of big liquid Kazakhstan company, which is Exploring Mining KazMunayGas. "Listing and international offering will also forward high transparency of the company's activity, of financial statements, will increase corporate managing level. Capitalization of the company itself will be increased," - the head of KazMunauGas added. Before the first vice president of the company Zhaksybek Kulekeev said about possible initial offering of 40% shares block of Exploring Mining KazMunayGas JSC, for which it will be possible to get $2 bn. Exploring Mining KazMunayGas JSC was established in March, 2004 as a result of merging of daughter companies of KazMunayGas - Embamunaygas and Uzenmunaygas. The company KazMunayGas in year 2005 mined 9 m. 364 th. tones of oil and gas condensate, that is 445 th. tones more, than in year 2004. KazMunayGas plans to produce 9 m. 450 th. tones of hydrocarbons in year 2006. [2006-07-05]