Kazakh Energy Company Not to Suffer From Ban on Oil Exports – Official

Text of report by privately-owned Kazakhstan Today news agency website

Astana, 2 June: Imposing a ban on the export of oil products will not affect the profitability of the KazMunayGaz national oil and gas company, the chairman of the board of the [Kazakh] Samruk Holding [joint-stock company], Kanat Bozumbayev, said today during a meeting with members of the parliament’s Senate, a [Kazakhstan Today news] agency correspondent has reported.

“Due to several reasons, this ban does not have very great influence on the KazMunayGaz,” Bozumbayev said answering a relevant question by the MPs.

He explained that “at present, practically all diesel oil produced by the Torgovyy Dom [Trading House] KazMunayGaz [closed joint-stock company] is sent to agricultural producers in line with a state programme”. “Diesel oil is sold at a fixed price, about 20 per cents cheaper than the market price,” Bozumbayev stressed. “In any case, we did not use to export diesel oil,” he noted.

“As for petrol, which the Torgovyy Dom KazMunayGaz produces, practically all petrol is sold through [the company's] own petrol filling stations, that is the KazMunayGaz is not affected,” the head of Samruk said.

[Monitor's note: On 19 May Kazakh Prime Minister Karim Masimov prohibited the export of oil products.]

Originally published by Kazakhstan Today news agency website, Almaty, in Russian 0849 2 Jun 08.

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