Kazakhstan Association of Organizations

Mission

Consolidation of efforts, protection and promotion of interests of independent subsoil users and oil refining companies by forming an open dialogue with the Government of the Republic of Kazakhstan

Aim

Promoting the efforts of independent subsoil users and refining organizations to achieve sustainable development and efficient production

Main tasks:

Represent, promote, protect and uphold the interests of independent subsoil users and refining organizations in the Government of the Republic of Kazakhstan

Take a major role in resolving OPOs issues of concern

Contribute to strengthening the status of OPOs as key players in the oil and gas market of Kazakhstan

Oil-producing organizations

91
Independent subsoil user company and joint ventures with KMG, producing oil in the Republic of Kazakhstan (excluding the three operators and KMG)
20,9%
Share of OPOs in oil and gas condensate production in Kazakhstan in 2022 (or 17.6 million tonnes in absolute terms)
Over 43,000
Total number of OPOs employees in five oil and gas regions of Kazakhstan
57
OPOs were exporting oil in 2022
2.4 trillion
Amount of tax payments in tenge for 2020-2022

Suggestions

Transparent and clear mechanisms and rules should be developed for the distribution of quotas when approving oil transportation schedules, in particular, an increase in export quotas.

Establish transparent and equitable rules on access to refineries for refining purposes

Elaborate scenarios for a phased transition to market conditions in the domestic market of oil and petroleum products

OPOs problem questions

Lack of equal access to refineries and monopolization of the oil products market

Absence of a transparent mechanism for quota distribution and access to trunk pipelines and transport infrastructure in the oil export case

Decline in OPOs production entails an increase in the Competent Authority's obligation to supply oil to the domestic market in percentage terms (70% or more)

Loss of profits caused by lower domestic market prices, which OPOs could have invested in maintaining output levels and restocking the resource base