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Open dialogue between the Government and oil producing companies

On February 22, 2024, an open dialogue took place between the Vice Minister of Energy of the Republic of Kazakhstan Erlan Akkenzhenov and 72 representatives from 55 oil producing companies (OPCs). The event was organized at the site of the Petromining Association.

Our company took an active part not only in this dialogue, but also in previous discussions on key industry issues. At this event, our company was represented by the Chairman of the Supervisory Board - Karsybekov Orazkhan Kairzhanovich, General Director - Tazabekov Erzhan Kakimovich and GR Director - Dr. Daulet Batyrzhan Sabyrbekuly.

The agenda of the working meeting included issues of a fair market and its regulation in terms of oil and petroleum products, namely: issues of export, imbalances in the distribution of profits and taxes in the chain up to the “gun”, transparency in the distribution of supply schedules for oil produced by low-performing oil producers to the domestic market, development of regulatory legal acts and others important aspects of the industry.

All these questions were formulated as a result of preliminary communications with OPCs. The main problematic issues were voiced in the report of the executive director of the association, Iaromir Rabai: “Based on the existing situation and issues, we have drawn up a number of proposals that can ensure a reduction in government intervention, transparency and competitiveness of the industry. Among them, the main ones I would highlight is the abolition of direct government regulation of prices for wholesale and retail markets for petroleum products, introducing a mechanism of antimonopoly control over balanced pricing based on indicators of external and domestic markets, providing equal access by creating regulatory requirements for oil refining and transportation services, determining the minimum share of petroleum products subject to mandatory sale through commodity exchanges, indicating the categories of entities , which are subject to this obligation, as well as a reduction in the share of state participation in the areas of exploration, production, oil and gas refining, supply of commercial gas, and retail sales of aviation fuel,” said Iaromir Rabai.

Following the event, the vice minister voiced the position of the Ministry of Energy of the Republic of Kazakhstan and further plans for reforms: “Today there was a truly open dialogue with oil producing organizations. There were many questions. I provided detailed explanations. Not a single issue raised was left unattended. Clearly, the Government is moving In the direction of comprehensive liberalization of the economy and the development of market competition. There is a lot of work ahead and this work has begun. The Ministry of Energy will continue an open dialogue with the market. The opinions of all parties will be taken into account," said Erlan Akkenzhenov.

“We had a complex agenda: there is a vision of the market, our relevant ministry represented by the Ministry of Energy, but along with this there is government policy. We organized this dialogue to understand this, discuss openly, professionally and diplomatically all the issues, and most importantly - to find consensus and hear the opinion and position of the competent authority. We believe that today’s meeting is a good example of the openness of the Government represented by the Ministry of Energy of the Republic of Kazakhstan,” summed up the head of the association, Sayat Boranbekov.