ASTANA, Kazakhstan, May 5. The issue of privatizing the Atyrau Oil Refinery was addressed by Asset Magauov, Deputy Chairman of the Management Board of KazMunayGas, during a government briefing, Trend reports.
According to him, a working group under the Agency for Protection and Development of Competition of the Republic of Kazakhstan (APDCRK) previously reviewed issues related to the regulation of the state sector. One of the group’s recommendations was to reduce the state’s share in both extraction and refining assets.
“So far, no final decisions have been made on the working group’s recommendations. But in general, the main criterion established was that the market should be deregulated and conditions created for refineries to operate in a competitive environment, thereby generating demand for them in the privatization process,” Magauov noted.
He also commented on the need for additional investments in the modernization of the refinery. According to him, during the 2008 modernization, the main focus was on increasing aromatic production to meet Euro-4 and Euro-5 fuel standards.
“At the same time, certain facilities require further investment, as the goal is to shift from annual routine capital maintenance to a three-year interval between overhauls. In this regard, an audit was conducted. Currently, an assessment is underway to determine how much additional funding will be required. I believe the necessary funds will be accumulated within the plant’s current financial operations. If needed, borrowed funds may be attracted. This process is in no way related to bringing in an investor,” the company’s deputy chairman added.
The Atyrau Oil Refinery is one of Kazakhstan's three major oil refineries, situated in the city of Atyrau. Established in 1945 during World War II, it plays a vital role in the nation's energy sector. The refinery is primarily owned by KazMunayGas, holding a 99 percent stake
