Business model

Unique geography

Kazakhstan benefits from its unique geographical position, a substantial resource base and a strategic location at the intersection of major trade routes. Approximately 85% of overland freight traffic between Europe and China passes through the country.

Stable economy

Kazakhstan has the largest economy in Central Asia, accounting for more than 50% of the region’s aggregate GDP. The country demonstrates sustained growth momentum.

Favourable investment climate and stable regulatory environment

The abolition of export customs duties on oil from new offshore fields and the introduction in 2023 of an updated legislative and tax framework for complex projects under the Improved Model Contract have helped create a more favourable and predictable investment environment in Kazakhstan.

National oil and gas company

• KMG is the national oil and gas company of Kazakhstan authorised to represent the state interests in the hydrocarbon sector. This status provides institutional support and access to state policy tools.
• Government support includes fiscal and tax incentives that help streamline the economics of mature assets and allow reinvestment in efficiency improvements.
• A flexible and predictable dividend policy takes into account the Company’s free cash flow and leverage levels.

KMG’s impact on Kazakhstan economy

• Dominant market position. KMG accounts for 26% of oil production and 17% of gas production in the country, as well as around 55% of oil transportation and approximately 80% of domestic refining capacity.
• Systemically important role in the economy. KMG ensures consistent budget revenues, reliable shareholder returns, and fulfilment of obligations to investors and creditors. The Company is one of the largest employers in Kazakhstan.

Full vertical integration across the value chain

• KMG has a diversified portfolio of assets across the entire oil and gas value chain – from exploration and production of hydrocarbons to transportation, refining, petrochemicals, and provision of oilfield services.

Industry leadership

Exploration

• Priority access to subsoil use rights through direct negotiations.
• Prospective portfolio of exploration assets.
• Robust exploration activities (subsoil exploration 1.0 and subsoil exploration 2.0).
• Significant resource potential and production growth prospects.
• Extensive geological and geophysical data bank.
• Attracting strategic partners under carry financing arrangements.

Production

• In addition to its own portfolio of production assets, KMG holds significant stakes in Kazakhstan’s three largest megaprojects (Tengiz, Karachaganak, and Kashagan), which ensure access to a reliable resource base and stable production levels.

Refining and marketing

• Leadership in oil refining.
• State‑of‑the‑art and upgraded refining capacities.
• Implementation of advanced refining technologies.
• Potential for further expansion of refining capacity.
• Secured access to feedstock supply.
• Increased refining depth and added value.

Oil transportation

• Reliable access to key export routes.
• Diversified portfolio of oil transportation assets.
• Control over trunkline infrastructure.
• Own tanker fleet.
• Leading market position in the oil transportation sector.
• Export growth potential.
• Transportation assets provide access to key export corridors.
• KazTransOil (90% subsidiary of KMG) is the national oil trunkline operator of the Republic of Kazakhstan.
• National Maritime Shipping Company Kazmortransflot (100% subsidiary of KMG) is the largest shipping company in Kazakhstan.

Financial resilience

• Investment‑grade credit ratings from the three leading international rating agencies.
• Balanced debt profile.
• Stable access to international capital markets.
• Disciplined financial policy.

Petrochemical projects as a new growth driver

The development of petrochemicals strengthens the Company’s vertical integration and increases added value across the entire value chain.

Balanced and experienced management

The management team combines deep industry expertise with a disciplined approach to risk and capital management, ensuring operational resilience and balanced allocation of investment resources.

Modern corporate governance framework

The Company has a modern corporate governance framework aligned with international best practices and public capital market requirements.

Commitment to sustainable development (ESG)

KMG consistently upholds sustainability principles by integrating ESG approaches into its Strategy, operations, and investment decisions.