KazMunayGas disposes of rumors about privatization of its refineries

KazMunayGas (KMG) has no plans for privatization of any of its three refinery plans in Atyrau, Pavlodar and Shymkent, according to Dmitry Makeev, deputy head of the company.

«We’ve noticed today that some media outlets and social networks have spread information about the alleged privatization of the Atyrau and Pavlodar refineries. Let us be clear, this information has nothing to do with reality. There were no negotiations of this kind. Both refineries are operating as usual,» the company said in a statement.

Several Kazakhstani media outlets reported that the government was going to sell KMG’s shares in the Atyrau and Pavlodar refineries, citing the example of the Shymkent refinery which is primarily controlled by private investors and reported fewer failures compared to the Atyrau refinery. The Anti-Monopoly Agency allegedly doesn’t mind the deal. Media reports also said that Russian Lukoil is interested in purchasing the refinery plant in Atyrau, while Gazpromneft wants to buy the Pavlodar refinery. 

In previous years, Kazakhstani authorities tried to sell these big refineries to investors on several occasions, particularly after their costly modernization when the refineries started producing products under the Euro 4 standard. However, the government later changed its mind.

In 2023, KMG reported a 1.5% decline in oil processing to 19.593 million tons. Only two refineries, Romanian Vega and the Atyrau refinery, reported an increase in output by 0.4% to 374,000 tons and by 4.8% to 5.475 million tons, respectively. The remaining refinery plants reported a decline in production: the Pavlodar refinery (-0.9% to 5.434 million tons), the Shymkent refinery (-7.5% to 2.87 million tons), Caspi Bitum (-7.4% to 427,000 tons) and Petromidia in Romania (-4.7% to 5.012 million tons).

As of January 1, 2024, Samruk Kazyna controlled 67.42% shares of KMG, the Ministry of Finance – 20% and the National Bank of Kazakhstan – 9.58%.