Senior Vice President for Oil and Gas Production at NC KMG,
Chairman of the Board of Directors, KMG EP
I am pleased to report that the efforts of the Сompany’s workforce and management in 2016 were fruitful, despite the challenging circumstances facing the international oil and gas sector.
We successfully accomplished a number of significant Company objectives and, as a result, achieved positive operating and financial results. We have also continued working on accomplishment of the Company’s strategic goals.
General Director Chairman of the Management Board
Aside from the complex environment that prevails in the global oil market, a number of factors, including devaluation of the tenge, increased crude oil supply to the domestic market and higher tariffs by monopolists had a significant impact on our business.
In this context, the Company’s primary objectives in 2016 were to maintain production levels, improve operating efficiency and preserve financial sustainability with particular focus on safeguarding social responsibility and development in our operational regions.
Dear Shareholders, 2016 was another challenging year for KMG EP’s Independent Non-Executive Directors (‘INEDs’), who have sought to uphold corporate governance and represent the interests of minority shareholders at Board level.
Since August 2016 cooperation between KMG EP and KazMunayGas National Company (‘KMG NC’) has improved as demonstrated by the progress on issues such as VAT recovery and the marketing of oil products in the domestic market. The INEDs set out below their principal areas of governance focus during 2016.More info
Includes the redeemed GDRs for completion of the option programme of the Company and being held in trust (as of 31.12.2016 – 9,560,401 GDRs), and also shares bought back in accordance with the own share buy-back programme (as of 31.12.2016 – 2,527,860 ordinary shares and 2,073,147 preference shares).
Shares of the Company are in circulation on the Kazakh Stock Exchange, whereas the global depositary receipts – on the London Stock Exchange. One GDR corresponds to 1/6 of an ordinary share.