Major oil pipeline operator of Kazakhstan, JSC KazTransOil, strengthens its positions in Kazakhstan oil transportation market with confidence. During 11 years of its activity JSC KazTransOil has reached high economic effectiveness, commercial attractiveness, financial justifiability, reliability and environmental safety. The Company transports about 60 percent of all Kazakhstan oil, provides with drinking water Western Kazakhstan via the longest in the world water line Astrakhan - Mangyshlak and establishes new routes, which will allow the domestic oil from unique Caspian fields to obtain direct entry to the world markets.
Receptacle of outstanding events of the JSC KazTransOil is refilled from year to year, at that practically each event has great strategic and economic importance for Kazakhstan development. The company, sole shareholder of which is JSC NC KMG, has extensive network of main pipelines, operates oil loading railroad overpasses, oil unloading railroad overpasses in Kazakhstan, oil loading marine terminal in Aktau port, water-line Astrakhan -Mangyshlak, important facility for Atyrau and Mangistau oblasts of Kazakhstan. JSC KazTransOil, being major oil pipeline operator of the Republic of Kazakhstan, provides oil transportation to petroleum refineries of Kazakhstan and export, and transportation of the Russian oil to domestic market and transit through Kazakhstan territory. The Company fully develops pipeline network, carries out preventive, diagnostic and repair works, renders operator services, and at the same time, places high emphasis on introduction of high technology and technique. Volume of oil transportation increases every year, which was 22,9 mln tons in 1997 and mounted to 45,7 mln. tons in 2007. Oil turnover via KazTransOil main pipeline system is increased too: this index increased from 17,2 mlrd/tn/km in 1997 up to 31,1 mlrd/tn/km in 2007. During 5 months of 2008 oil transportation via main pipeline system makes up 19,4 mln.ton, turnover —13,5 mlrd/t/km. JSC KazTransOil has put into operation Oil pipelines Alibekmola- Kenkyak, Severnye Buzachi-Karazhanbas, Oil loading trestle at HOPS Atasu, Oil loading railroad overpass Shagyr. Unique projects, among which SAP/R3, SCADA, GIS, FOCL have been implemented, the Integrated Quality and Environment, Health and Safety Management System has been performed and successfully operates in accordance with international standards ISO 9001:2000, ISO 14001:2004, OH-SAS 18001:2007.
The Company strengthens its international positions with confidence. In 2001 JSC KazTransOil", first among Kazakhstan companies, entered the
international capital markets, issuing and placing Euro-bonds to the sum of USD 150 mln, with maturity date of five years. Debut Euro-bonds were successfully paid off in 2006. In February 2008 JSC KazTransOil settled a bargain for purchase of 100% shares of the company "Batumi Industrial Holdings Limited". As a result of this purchase the Joint Stock Company KazTransOil has assumed control of legal entity, which has in its possession 100% of the Batumi Oil Terminal shares and an exclusive right to manage Batumi port, having favorable strategic and geopolitical location.
Three years ago the first queue of the Kazakhstan - Chinese pipeline Atasu - Alashankou was built; operator of this pipeline is Kazakhstan - Chinese Pipeline LLP, Joint Venture of the JSC KazTransOil and Chinese National Corporation for Oil and Gas Exploration and Production (CNODC). Atasu -Alashankou is the first export pipeline of the world level, built by independent Kazakhstan. Its operation provides for significant increase of tax proceeds to State and local budgets, strengthens export and transit potential of Kazakhstan and makes provision for local people employment. Head of State Nursultan Nazarbayev has emphasized importance of the Atasu -Alashankou pipeline for Kazakhstan, defining it as a paramount of investment cooperation between Kazakhstan and China. Oil transportation from Kazakhstan to China via Atasu -Alashankou pipeline began in the later half of July 2006. According to results of 2007 volume of oil transported via Atasu -Alashankou main pipeline was 4,8 mln.ton. During 5 months of 2008 oil transportation via this pipeline made up 2,3 mln.ton, and it is higher than for the same period of the last year for 0,4 ton of oil. In December 20, 2006 JSC NC KazMunayGas and Chinese National Corporation signed an Agreement on engineering philosophy of the second queue of the Kazakhstan - China pipeline. In 2007 JSC KazTransOil and Kazakhstan -China Pipeline LLP began its implementation. This project shall provide access to Chinese market for the Western Kazakhstan consignors and allow further development of oil transportation infrastructure of Kazakhstan by means of integration of isolated eastern and western pipeline systems of Kazakhstan.
The project of Kazakhstan -China pipeline's second queue construction is to be implemented in two turns. Within the frame of the first stage construction at the site Kenkyak - Kumkol is scheduled.
Solemn Presentation of the Kazakhstan - China pipeline construction's second stage took place in Kenkyak settlement, Aktobe oblast in December 11,2007. It is scheduled to complete construction of the Kenkyak - Kumkol pipeline by the end of 2009.
In the future, as oil production in the Western Kazakhstan increases, the second stage would be implemented, within the frame of which pipeline Kenkyak -Atyrau is to be reversed and carrying capacity of pipeline from Kenkyak to Alashankou would be augmented for deliver to China 20 mln. ton of crude oil per annum. To date considerable proportion of the Kazakhstan oil is exported through Russia, mainly via section Atyrau - Samara of Uzen - Atyrau - Samara pipeline and further through Russian pipeline systems and CIS territory with the possibility of deliveries to the Black and Baltic Sea terminals and also to European markets. The volume of oil transportation through this oil pipeline is stably growing every year. According to results of 2007 volume of oil transportation in this direction have reached 15,97 mln.t. During 5 months of the current year 6,9 mln. ton of oil was pumped over via Atyrau -Samara pipeline. In comparison with the same period of the last year volume of oil transportation increased for 0,2 mln.ton. Considering remoteness of Kazakhstan from key oil markets, issues of transportation have primary
importance. As it was recently emphasized by analysts of Standard and Poor's agency in their analytical treatment of Kazakhstan potential to increase hydrocarbon production and its transportation, to fulfill its plan, Kazakhstan shall invest considerable funds to development of new fields and pipeline infrastructure. Against the situation in the world petroleum industry, "considerable investment to export route development" would have fundamental importance (mainly, to pipelines, being the most effective and reliable mean of oil transportation)". Taking into account these factors, JSC KazTransOil proceeds to develop new route projects to transport oil from promising Caspian fields. Exactly so is profitable for Kazakhstan in every respect, construction of the oil pipeline Ekene-Kuryk, which will become the integral part of the Kazakhstan Caspian Transport System (KCTS). This system is designed for pumping out Kazakhstan oil, predominantly from Kashagan and Tengiz fields, via Baku - Tbilisi -Ceyhan (BTD) system and the Trans-Caucasian transport corridor till the Black sea ports. Connecting with steel pipes eleven oblasts of republic, JSC KazTransOil ensures thousands of people with reliable earnings, invests in social protection of its workers, high standard of production. The fact of no small importance: the stably working Company completely and in proper time pays taxes to the state budget. For the Company social responsibility means not only charity, but high responsibility in the current production activity, where the first of all are interests of population. Therefore Pipeline Company places high emphasis on support of social - significant regional projects. During past years significant funds have been distributed for provision of cultural and welfare facilities of the Western Kazakhstan region, for implementation of comprehensive environmental program, improvement and to planting of trees and gardens in Aktobe city, rehabilitation of social objects in Zhana -Ozen town and many others.
In the context of the message of Head of the State, where support of village was declared the priority of state policy for three years the, company KazTransOil has developed its own Aid Program to hamlet, central objective of which became the organization of the measures, directed toward education and job placement in the petroleum field of rural young people. Due to the Company support 92 students from socially unprotected strata of rural localities have completed their education and were placed on a job in the structural subdivisions of the Company.
Recently JSC KazTransOil has made a long path through coming-to-be and today it is one of the leading domestic companies by right. Being harmoniously developed, company is ready to further collaboration both with petroleum companies and operators of pipeline systems of other states, for guaranteeing the reliable and economically effective transport of Kazakhstan oil to the world markets.