Archive for December 4th, 2007
Zhaikmunai — What Is Behind Its Intended IPO?
Zhaikmunai, the Kazakh oil and gas company, stated its intention to offer its shares in an IPO on the London Stcok Exchange, hoping to raise up to $760 million. This is the first private oil and gas company in Kazakhstan which decided to seek transparency by becoming listed in London. Officially, the company explains its motive by the lack of funds for further development of business. However, analysts do not exclude that foreign (or domestic) investors are seeking the listing in an attempt to protect their holding in Kazakh oil and gas sector from possible encroachments by the state.
According to the official press release by the company, Zhaikmunai intends to place global depository receipts (GDR’s) on the exchange in the indicated range of $13-16 per share. It is expected that Zhaikmunai - being privately held - will issue GDR’s in exchange for a portion of shares in the company. The precise timing and the size of portion to be sold in course of the IPO are so far unknown. The timing of the announcement, however, is rather surprising. Given the current high oil prices, it would seem that a company of this type should have no problems finding sources of funds - unlike, for example, domestic banks and construction companies.
Zhaikmunai’s general director Vyacheslav Druzhinin, who is based in Uralsk, not far from where the company operates, refused to comment, saying that the issue was outside of his competence. As Business & Power, the Kazakh weekly, quotes “the local management was not to release any information to the media as it was not familiar with the situation.” Requests for comments that Business & Power sent to Kai-Uwe Kessel, the managing director of Belgium-based Probel Capital Management, also remained without an answer. According to Reuters, however, Zhaikmunai is expected to put up for sale 42.6 percent of the company.
News Roundup - December 4, 2007
Financial Times: Kashagan becomes a thorn in Eni’s side
Eni’s greatest triumph has become its biggest headache. In 2001, when Italy’s leading oil and gas company took over as operator of the vast Kashagan project, developing the biggest oilfield found since the 1960s, it seemed to be the culmination of its transition from regional player to international major…
The Oil and the Glory: Kazakhstan wants equal ownership status at Kashagan
The news today in one of the world’s great oil disputes is that Kazakhstan has made public a demand for an equal share in the supergiant Kashagan oilfield…
Guardian Unlimited: Kazakhstan to adopt biofuel law, plans more plants
Kazakhstan will next year adopt laws to regulate its fledgling biofuel industry and plans to construct at least two more plants in the next 18 months to produce environmentally friendly fuel from crops, industry officials said…
Guardian Unlimited: Kazakh wheat exports hinge on transport
For sale: 10 million tonnes of Kazakh wheat. Wanted: rail cars to move it to market. Kazakhstan expects a record wheat harvest to propel it into the ranks of the world’s top five exporters this season, easing a global grain shortage that has pushed prices to a record high…
Guardian Unlimited: Kazakh central bank raises rates sharply, cites inflation
Kazakhstan’s central bank has raised its key refinancing rate by two percentage points to 11 percent to cap inflation after keeping the rate unchanged for months to prop up liquidity in the financial system…
Ferghana.ru: How Kazakhstan became the OSCE chairman
This skills with which the Kazakh diplomacy secured the OSCE chairmanship for its country deserves sincere admiration. As a matter of fact, this compromise is practically the only outcome of the meeting of OSCE Council of Foreign Ministers in Madrid, Spain, last week that is worth mentioning…
Ferghana.ru: National census will take place in Kazakhstan in 2009
National census will take place in Kazakhstan between February 25 and March 6, 2009. The government adopted Resolution No 1138 “On national census in the Republic of Kazakhstan in 2009″ and “Plan of the national census in the Republic of Kazakhstan” on November 28…
Adnkronos: Kazakhstan: Experts divided over national oil company’s ambitions
International experts are divided about the impact of a new bid by Kazakhstan’s national energy company KazMunaiGaz to raise its stake in a foreign oil consortium…
Journal of Turkish Weekly: Railway link between Kazakhstan, Turkmenistan and Iran
In a historic ceremony Saturday, President Berdymuhamedov of Turkmenistan used a gold-plated spanner to bolt together two sections of rails, marking the formal start of construction of railway link between Kazakhstan, Turkmenistan and Iran…
Itar-Tass: Seven killed, 10 injured in two major road accidents in Kazakhstan
Seven people were killed and ten were injured in two major road accidents in Kazakhstan over the past 24 hours, the Kazakh Ministry for Emergency Situations reported on Monday…
Oil and Gas Journal: Russia, Turkmenistan hasten Caspian pipeline work
Russia and Turkmenistan have agreed to accelerate development of the proposed Caspian Gas Pipeline project following talks between OAO Gazprom Chief Executive Officer Alexei Miller, Turkmen President Gurbanguly Berdymukhammedov, and Deputy Prime Minister Tachberdy Tagyyev…
The construction of the Trans-Caspian pipeline for the gas export from the Central Asia to Europe could become complicated from the political viewpoint, because this route runs via the territory of many countries, Lukas Herman, an analyst of Deutche Bank, said…
OilVoice: Imperial energy provides operational update
Imperial has achieved its year end production target of 10,000 bopd - currently producing at a rate of 10,000 bopd which continues to increase…
Rigzone: Imperial Reaches Production Target Ahead of Schedule
Imperial’s tie-in to the Transneft national pipeline system at Luginetskoye is complete and is currently being commissioned. As a result, Imperial has been able to achieve a production rate of 10,000 bopd meeting its year-end target one month ahead of schedule…
Neweurasia.net: Shushkevich vs Nazarbayev
Stanislav Shushkevich - the first head of state of independent Belarus was removed in 1994 from his position of chairman of the Supreme Soviet through the effort of the parliamentary commission led by Alexander Lukashenka (who became the president the same year). In his interview to “Nasha Gazeta” (Our Newspaper) said that Kazakhstan is a country similar to Belarus by its political system…
Kazinform: VISOR Capital obtains FSA license in the UK
“VISOR Capital” JSC becomes the first and the only Brokerage House in Kazakhstan to obtain an FSA license. On the 6th of November 2007 The Financial Services Authority of the Financial Markets and Organizations, London, UK, issued a license to Visor Capital (UK) Limited, the subsidiary of “VISOR Capital” JSC…
Interfax: ABN Amro Kazakhstan subsidiary increases charter capital 360%
ABN Amro Bank Kazakhstan has increased charter capital 360% to 8.28 billion tenge by issuing supplementary shares totaling 6.48 billion tenge, the bank reported…
