History
KazGasCompany LLP was created for the purpose of effective implementation of the provisions of the Agreement between the Government of the Republic of Kazakhstan and the Government of the Russian Federation on cooperation in the gas industry dated January 01, 2008.
On Febraury 21, 2007, KazGasCompany LLP was registered as a legal entity by the Justice Department of Almaty. The main functions of the company were defined as conducting operations with Kazakhstani natural gas, including marketing, processing, transportation, and sale of gas and its processed products on the domestic and foreign markets. The fundamental aspect confirming the equal conditions of the parties in the activities of the enterprise is the distribution of shares of its participants in the ratio of 50% to 50%. The prerequisites for the creation of the joint venture were the expansion and deepening of cooperation between Kazakhstan and Russia in the energy sector, the transition of relations between the two countries to the level of mutually beneficial cooperation and partnership. The format of such relations provides for mutual access to each other's gas markets and gas transportation systems, joint entry into international markets.
The initiative to create a joint venture became possible thanks to direct agreements between the President of Kazakhstan and the President of Russia, as well as the signing of the Kazakh-Russian intergovernmental agreement on cooperation in the gas sector on November 28, 2007. The partnership between Kazakhstan and Russia in the gas sector is based on equal and mutually beneficial principles.
KazGasCompany was established as a Closed Joint Stock Company. Subsequently, in order to comply with the provisions of the Law of the Republic of Kazakhstan dated May 13, 2008 "On Joint Stock Companies", KazGasCompany CJSC was re-registered as a Joint Stock Company. The General Meeting of Participants dated May 5, 2009 decided to change the organizational legal form of the enterprise by reorganizing it into a Limited Liability Partnership.
The activities of KazGasCompany are related to the utilization of gas produced at the Karachaganak oil and gas condensate field, one of the largest in the world with reserves of over 1.2 billion tons of liquid hydrocarbons and 1.3 trillion cubic meters of gas. The field is being developed by the Karachaganak Petroleum Operating B.V. consortium. The first resource agreement of KazGasCompany was an agreement with Karachaganak Petroleum Operating B.V. in 2007 for the purchase of raw gas from the Karachaganak field for a period of 3 years. During 2007-2010. KazGasCompany, with the assistance of JSC NC KazMunayGas, OAO Gazprom and the Ministry of Energy and Mineral Resources of Kazakhstan, prepared a package of intergovernmental documents that ensured the conclusion of a direct agreement on the processing of Karachaganak gas between KazGasCompany and the Orenburg Gas Processing Plant. On July 17, 2010, a Joint Declaration of Presidents N. Nazarbayev and V. Putin on the development of long-term cooperation in the field of gas processing from the Karachaganak field (hereinafter the Declaration) was adopted, and an Agreement was concluded between the Government of the Republic of Kazakhstan and the Government of the Russian Federation on cooperation in the creation of a business entity based on the Orenburg Gas Processing Plant dated October 3, 2010 (hereinafter the Agreement).
Guided by the provisions of the Declaration and Agreement, on May 31, 2007, KazGasCompany concluded a fifteen-year contract for the sale and purchase of raw gas with Karachaganak Petroleum Operating B.V. The signed long-term contract became a qualitatively new stage of cooperation between the joint venture KazGasCompany in terms of stability and reliability of supplies. The contract entered into force on September 1, 2007.
