Financial Sustainability Strategy

Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation.

KMG’s Financial Stability

KMG strives to provide maximum benefits for Kazakhstan and contribute to the modernization of the country’s economy diversification. The mission of the company is aimed at strengthening the financial position of the company among other priorities and goals.

There is a tendency to reduce the level of production on some mature assets and in order to maintain them at the current level of production and increase of oil recovery, it is necessary to make investments, capital investments.

KMG plans to cut costs and strengthen financial positions. If earlier in previous years large investments were directed to investment programs, for example, modernization of oil refineries, then in the future such costs are not planned. The stage of intensive capital costs has ended and further these projects will begin to give impact, accordingly the financial burden on the company decreases.

Major projects were basically modernized at the expense of borrowed funds attracted at favorable conditions. But at the same time, the income from their activities will not be significant due to the fact that the tariff for their services is approved at a level sufficient to service debts. Thus, the super-profits from recent capital expenditures are not expected. On the other hand, the overall multiplier effect on the economy of Kazakhstan as a whole is important. Basically, this concerns the creation of new jobs and the retention of available jobs. In the structure of companies there are unprofitable enterprises, to which a number of oilfield services companies belong. However, for reasons of social responsibility, KMG does not eliminate them, trying to help in other ways – to find orders, new work to save jobs.

Key Indicators of the DODO Program

Name/ Period

2017 (Actual)





Number of FFSs






Sales volumes (Kt)






For reference:

The DODO “Dealer Owned – Dealer Operated” program (the Partner owns – the Partner manages). The main goal of the program is to enable the owners of gas stations to become part of the network of gas stations of KazMunayGaz – to work under the brand of KazMunayGaz, to sell oil products by coupons and KMG cards. Entrepreneurs (Partners) will be able to more effectively manage their own, existing gas stations.

For reference:

The CODO “Company Owned – Dealer Operated” program (the Company owns – the Partner manages) – the transfer to the management of private entrepreneurs of FFSs with sales volumes of less than 300 tons / month. This program allows you to optimize the current costs for the content of gas stations, as well as enables small businesses to increase profits by concentrating efforts on a particular facility.

Economic Effect from the CODO Program (KZT mln)