The KMG International Group, through KMG Trading, managed on behalf of KazMunayGas, the process of selecting Vitol, as the company to arrange up to $3bln prepayment on the back of future crude oil deliveries representing 20% share of KazMunayGas in Tengiz oilfield*.
Headquartered in the Netherlands, Vitol is one of the leading traders of raw materials and petroleum products worldwide.
“The results and expertise of KMG International in trading operations supported our involvement in the coordination of this important and complex project for our sole shareholder - KazMunayGas, thus contributing to streamlining the operations of Kazakh oil exports via our trading division. Yearly, KMG Trading operates over 14 million tons of raw materials and finished products and this experience and capacity lead us to be the promoter of the Kazakhstan petroleum industry at the international level and a stability mainstay of the energetic sector in the region of the Black and Mediterranean Seas”, states Zhanat Tussupbekov, CEO of KMG International.
In the upcoming period, KMG Trading together with KMG, Vitol and Tengizchevroil** representatives will start working on finalizing the documentation of this important transaction of KMG. It is expected that KMG will be able to draw the first tranche within 2-4 months.
Established in 1993, Tengizchevroil operates the Tengiz and Korolevskoye oilfields, situated in North-West of Kazakhstan near the CPC*** pipeline (Caspian Pipeline Consortium) and the city of Atyrau.
* The Tengiz perimeter is the biggest exploited oilfield in Kazakhstan having a production of 26.7 million tons of crude in 2014 in comparison with 80.8 million tons – the total amount of crude oil produced in Kazakhstan last year.
** Tengizchevroil – Chevron (50%), Exxon Mobil (25%), KazMunayGas (20%) and Lukarco-Lukoil (5%)
*** CPC – Rusia (31%), Kazakhstan (19%), other operators
Corporate Communication and Public Relation Department