ANALYSIS - Kazakhstan consolidates state assets in oil and gas industry
21.02.02 00:00
/REUTERS, Almaty, Dmitry Soloviev, Feb 21, 02/ - President of Kazakhstan
consolidated state oil and gas companies into unified structure
Kazmunaigas, having initiated a reorganization of key industry of the country
and having performed next staff changes in high echelons of power. By a
decree of Nursultan Nazarbaev last Wednesday there was created a
company Kazmunaigas, which includes national oil company Kazakhoil and
two transport monopolies KazTransOil and KazTrans Gas united into holding
Oil and gas transport.
Structure that will consolidate assets for the amount of several billion US
dollars will be a large player in fast developing oil market of Kazakhstan. The
country that extracted about 40 million tons of oil last year is going to
triple production by the year 2015 and become one of the largest oil and gas
exporters in the world.
Two thirds of Kazakhstan's budget is revenues from oil and gas industry and
half of export consists of oil and gas condensate. Based on idea of new
Prime Minister of the country Imangali Tasmagambetov appointed for this
position after the Government change in the end of January 2002,
Kazmunaigas was called to consolidate state assets in oil and gas industry
and increase their controllability.
"The Government initiated adoption of the country head decree on a creation
of vertically integrated company, which was called to become the powerful
center of oil and gas sector of the country," cited a press service of
Tasmagambetov a speech of the Prime Minister at a presentation of
supervision of Kazmuniagas on Thursday.
Former akim of Mangistau oblast Lyazzat Kiinov became the head of
consolidated company. His deputy, based on the report of Tasmagambetov's
press service, is a head of Oil and Gas Transport, son-in-law of the
President Nazarbaev, Timur Kulibaev.
POLITICS OR ECONOMY?
A fate of one more influential supervisor of oil and gas sector - the President
of Kazakhoil and ex-premier of Kazakhstan Nurlan Balgimbaev is not clear
yet.
Tasmagambetov while presenting Kiinov to a collective of Kazmunaigas
mentioned about merits of the former head of the largest national company
of Kazakhstan.
"Balgimbaev is one of companions-in-arm of Nazarbaev and the state head
highly appreciates his experience and knowledge," said the Prime Minister.
Balgimabev in turn said about new supervisor "he is famous, professional oil
worker who knows his deal".
Changes in a supervision of key industry of Kazakhstan followed the
Governments change in the end of January of 2002, when Nazarbaev
replaced ministers and vice premiers but almost didn't change the Cabinet
skeleton. Some analysts think that changes in oil industry had probably
political basis and allowed Kulibaev strengthen his positions.
"Maybe, authorities of Kulibaev in a new position will be even higher than in
OGT," told Reuters the governmental source.
Foreign oil companies exploiting giant oil fields in Kazakhstan have
estimated this situation very warily yet, however most think that consolidation
of state companies has not only economic reason.
"We are now trying to analyze this reorganization. I think that the question
here is not only in economy," told Reuters a source in a large foreign oil
company working on Kazakhstan projects.
At the same time, consolidation of separated assets of the state in oil
industry, of course, will increase their controllability and expand fund bas,
thinks analyst of Goldman Sachs in Moscow El Brich.
"It seems to be a good decision. From the point of view of bonds market, it
has certain advantage. It (reorganization) will help us decrease cost of
borrowing. Especially taking into account that this company will have same
structure as Kazakhoil having on a balance oil reserves," he says.
Two out of three consolidate companies have eurobonds issues: Kazakhoi
floated bonds for 125 million euro last week, in July of the year 2001
KazTransOil enterd the market with euro borrowing for $150 million.
KazTransGas plans to repeat colleagues experience this year.
"It's clear that bankers like more to lend the rich not the poor," said Brich.
It will be possible to cheapen borrowings by ratings increase also, which, in
opinion of Brich, may follow the consolidation. Kazakhoil, assets of which as
of October 2001exceeded $2 billion has rating at the level of country' one -
"BB", whereas transport company KazTransOil with assets of about $1.1
billion has rating at the level lower - "BB-".