Kazakhstan: Profits double for KMG

Last year was an exceptional one for NC Kazmunaigas, which saw net profits more than double year on year to $2.73 billion, compared to $1.29 billion in 2009. No reasons were given for the huge rise, though the rise in global oil prices was clearly a key factor.

KMG, which owns a 62 per cent stake in its London listed affiliate KMG EP, also benefited from a rise in production from the Chevron-led Tengizchevroil joint venture, in which it holds a 20 per cent interest.

KMG, which has a very good credit rating and an unblemished repayment record, needs to raise billions of dollars in extra financing over the next four to five years to meet its cash calls for the Kashagan project, in which it holds an 18.6 per cent interest. The company is in the market for a $1 billion-plus loan that will refinance some of its existing debt.

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