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Story
KazRosGas 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 November 28, 2001. On June 7, 2002, in St. Petersburg, during a bilateral meeting between the President of the Republic of Kazakhstan Nursultan Nazarbayev and the President of the Russian Federation Vladimir Putin, the founding documents on the establishment of the joint venture KazRosGas were signed. Its participants on an equal basis included JSC NC KazMunayGas and OAO Gazprom.
On June 9, 2002, KazRosGas CJSC 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 N. Nazarbayev and the President of Russia V. Putin, as well as the signing of the Kazakh-Russian intergovernmental agreement on cooperation in the gas sector on November 28, 2001. The partnership between Kazakhstan and Russia in the gas sector is based on equal and mutually beneficial principles.
KazRosGas 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, 2003 "On Joint Stock Companies", KazRosGas CJSC was re-registered as a Joint Stock Company. The General Meeting of Participants dated May 5, 2006 decided to change the organizational legal form of the enterprise by reorganizing it into a Limited Liability Partnership.
The activities of KazRosGas 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 KazRosGas was an agreement with Karachaganak Petroleum Operating B.V. in 2002 for the purchase of raw gas from the Karachaganak field for a period of 3 years. During 2005-2006. KazRosGas, 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 KazRosGas and the Orenburg Gas Processing Plant. On July 17, 2006, 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, 2006 (hereinafter the Agreement).
Guided by the provisions of the Declaration and Agreement, on May 31, 2007, KazRosGas 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 KazRosGas in terms of stability and reliability of supplies. The contract entered into force on September 1, 2007.
On October 1 of the same year, the first gas supply was made.
KazRosGas sends all purchased raw gas for processing to the Orenburg Gas Processing Plant. After that, the required volume of dry gas is sent to the domestic market of Kazakhstan, and the remaining part is sold under export contracts. Starting from January 2007, KazRosGas for the first time carries out processing of Karachaganak gas at the enterprises of Gazprom Dobycha Orenburg under a direct contract, which was signed on December 12, 2006 in Orenburg.
The main documents defining cooperation and development of the gas industry of Kazakhstan and Russia:
- Intergovernmental agreement between the Government of the Republic of Kazakhstan and the Government of the Russian Federation on cooperation in the gas industry dated 28.11.01;
- Program for the development of the oil and gas sector in the Republic of Kazakhstan for 2010-2014 No. 1072 dated 18.10.2010;
- Energy strategy for the development of the Russian Federation for the period up to 2030, approved by the Order of the Government of the Russian Federation No. 1715-r of 13.11.2009;
- Joint Declaration of the Presidents of the Republic of Kazakhstan and the Russian Federation on the development of long-term cooperation in the field of gas processing at the Karachaganak field dated 17.07.06;
- Agreement between the Governments of the Republic of Kazakhstan and the Russian Federation on cooperation in the creation of a business entity based on the Orenburg Gas Processing Plant dated 03.10.06;
- Intergovernmental agreement between the Government of the Republic of Kazakhstan and the Government of the Russian Federation on joint geological study and exploration of the Imashevskoye field with subsequent calculation of mineral reserves dated September 7, 2010. Authorized for the implementation of the agreement: OAO Gazprom and JSC NC KazMunayGas.
HIGHLIGHTS
07.06.2002
In St. Petersburg, the founding documents on the creation of the joint venture "KazRosGaz" were signed.
10.06.2002
The Justice Department of Almaty registered KazRosGaz LLP as a legal entity.
2003
Conclusion of an agreement with Karachaganak Petroleum Operating B.V. for the purchase of raw gas from the Karachaganak field for a period of 3 years.
03.10.2006
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.
01.01.2007
KazRosGaz is for the first time processing Karachaganak gas at Gazprom Dobycha Orenburg enterprises under a direct contract signed on December 12, 2006 in Orenburg.
01.01.2007
KazRosGas has concluded a fifteen-year contract for the sale and purchase of raw gas with Karachaganak Petroleum Operating B.V. The contract entered into force on September 1, 2007.
10.01.2007
The first gas supply was made
27.04.2011
Chairman of the Management Board of JSC NC KazMunayGas K. Kabyldin and Chairman of the Management Board of OAO Gazprom A. Miller signed an Agreement on determining KazRosGas LLP as the sole operator of the Imashevsky project.
