5 September the oilmen of the country will mark their professional holiday – the Day of petroleum-gas complex of the republic. Modern Kazakhstan is unthinkable without oil-gas branch; at the same time it is impossible to assess the branch without one of the biggest extracting companies – JSC KMG EP – “Exploration Production KazMunaiGas”.

KMG EP is first of all one of the biggest taxpayers in the republic: in the recent four years the company paid over KZT 700bn to the national budget.

Besides, it generates incomes providing thereby stable dividend payments (over 20% of revenues annually) to its shareholders.

Taking into account the fact that the state is the chief stockholder via the National Company “KazMunaiGas”, possessing 60% of KMG EP shares we may surely confirm that the incomes’ major part is distributed in the state’s favor.

The state package’s cost has grown by KZT 350bn since the company’s IPO in 2006 and the total dividends’ sum gained from the state package made up KZT 85bn in this period.

Kazakhstanis – depositors of domestic pension funds who are at the same time KMG EP shareholders and their welfare largely depend on the company’s effectiveness. The company’s shares, so called “blue chips” , have been regarded for ages as one of the most profitable instruments for investing, i.e., they are in the category of those “making differences” in domestic stock market.

Kazakhstanis can buy their shares, the more especially as the company recently offered another instrument in the market – privileged shares. Thereby KMG EP is actively involved in domestic stock market’s development.

An illustrative example: in crisis when the Government made unprecedented efforts to stabilize domestic banking system, KMG EP, unlike many other firms kept and accumulated their means in domestic banks. Undoubtedly it helped maintain sustainability in Kazakhstan financial-banking system.

It’s important that progress made by the company has a strategic character: they improve risk management demonstrating adherence to modern standards.

The company profitably invested in shares of “Kazgermunai”, “Karajanbasmunai”, and “Petro Kazakhstan” and in July announced acquisition of shares in other three companies – “Kazakhoil-Aktobe”, “Kazakturkmunai” and “Mangystaumunaigas” which speaks in favor of its strengthening positions in the country’s economy.

independent international rating agencies affirmed such estimation of their activity recognizing KMG EP a most transparent company in Kazakhstan with a high level of corporate management.

Being among the biggest employers KMG EP is also a sponsor of social programs. The employees’ wages are the highest in the region exceeding an average salary in analogical companies. Considerable means are invested in improvement of social conditions for its employees, support to infrastructure and healthcare.

Eugeny Stupin