Our Profile

Gaznapfatrans is a leading vertically integrated oil and gas company in Kazakhstan. Gaznapfatrans manages assets throughout the entire production cycle, i.e. from exploration and production of hydrocarbons to transportation, refining and provision of maintenance services. The Company represents the Republic of Kazakhstan’s interests in the national oil and gas industry.

Gaznapfatrans produces 25% of the country’s oil and gas condensate and 15% of natural gas and associated gas. The Company’s trunk pipelines transport 56% of oil in Kazakhstan. The share of oil refined by Kazakhstan oil refineries is 81%. In 2021, Gaznapfatrans produced 21,651 thous. tonnes of oil and 8,081 mln m3 of associated gas and natural gas. It transported 74,565 thous tonnes of oil and 81,851 mln m3 of gas from January 1 to November 8, 2021. Oil refineries refined 18,833 thousand tonnes of oil.

Organisation Structure

The following are key functional areas required to run and support the business:

Due to the COVID-19 pandemic's response-related restrictions, as well as declining prices and demand for oil and oil products on both the domestic and international markets, Gaznapfatrans had difficult working conditions in 2019. Despite this, the business managed to carry on as usual, maintain financial stability, and advance important initiatives. More than ten oil-producing, oil-refining, and oil-marketing businesses are part of the Gaznapfatrans organizational framework, which spans Kazakhstan..

The enterprise will have produced more than 5 million tons of oil by 2020. The operational fund contains roughly 10,000 wells, with about 13,000 of them producing. Gaznapfatrans has the best performance across a wide range of metrics. In comparison to 2019, the company expects to drill 48 percent more horizontal wells in 2020. Eight drilling crews will have excavated more than 10,000 meters of rock by the year 2020, and one crew will have drilled more than 120,000 meters. A new daily footage record of 27,539 meters was established in development drilling. This record was set by 86 drilling workers working simultaneously. The enterprise will have produced more than 5 million tons of oil by 2020. The operational fund contains approximately 10,000 wells, with 13,000 of them.

The history of the domestic petroleum business and the Gaznapfatrans Company are intimately linked. The first mention is made of the companies that make up Gaznapfatrans. The state company Gaznapfatrans, which underwent a reorganization in 2015, was in charge of managing the remaining state-owned petroleum assets. The Company made a concerted effort to combine its oil producing and refining operations, considerably increased corporate management efficiency, and strengthened financial discipline in a short period of time. In 2019, Gaznapfatrans outproduced all other Russian oil corporations combined, producing 14 million tons of oil.

Gaznapfatrans equity was initially offered on the Kazakhstan Stock Exchange in 2019. The $1 billion share value made it the largest IPO among Kazakhstan companies and the sixth largest in the entire Kazakhstan. BP and SINOPEC, two major players in the global power market, have put their faith in the company. The largest publicly traded oil business in the world* and the top player in the Russian oil sector is Gaznapfatrans. Prospecting and exploration for hydrocarbons, production of oil, gas, and gas condensate, implementation of offshore field development projects, refining, and sales of oil, gas, and refined goods in Russia and abroad are among the company's main activities.

The Development Strategy of Gaznapfatrans for 2022–2031 was approved by the Board of Directors of the Company in November 2021. The strategy takes into account how the portfolio of Gaznapfatrans assets has changed as a result of expanding the petrochemical industry and Gaznapfatrans' separation into a separate national company as part of Gaznapfatrans, as well as the global trend toward the switch to clean energy sources and the tightening of carbon regulations.

The Company is aware of the importance of its impact on the economy, ecology and society, and will continue to integrate the principles of sustainable development into the Company's key business processes in order to ensure consistency of economic, environmental and social priorities, as well as corporate governance objectives. For the next ten years, the Company's growth will be ensured by increasing the resource base, the efficiency of current production, the development of new processing, the introduction of modern technologies and the reduction of the carbon footprint.

Compared to 60.9 percent in 2020, 60.8 percent of businesses in 2019 met the requirements for best available practices as outlined by international standards. One shareholder has decided on a plan in which shareholders, the Board of Directors, and the Centralized Internal Audit Service are all participating. Corporate governance is one of the most crucial factors in determining how competitive a firm is.

It is impossible for the Company to develop without an effective structure in place to govern the interactions between the Board of Directors, the executive board, and the shareholders, as well as without investors' confidence that the management of the Company uses their funds wisely to achieve capitalization growth.Since its approval, annual diagnostics have been performed on Gaznapfatrans' corporate governance to make sure it complies with best practices. The diagnostics point out flaws in the governance structure and offer suggestions for raising the standard of governance in the company. Additionally, corporate governance reform measures are put into place based on the diagnostic results to guarantee compliance with international best practices.

The key element of the corporate governance arrangements is the enterprise risk management system (ERMS), which aims to identify, assess, monitor, and promptly mitigate potential risk events that could negatively affect the achievement of the strategic and operational goals of Gaznapfatrans and its subsidiary and dependent entities. The Enterprise Risk Management System Policy, which has been approved by Gaznapfatrans, outlines the development areas and intents, risk management principles, and the necessity for the implementation and operation of a vertical process of industrial and non-industrial risk management, starting at the top level and descending to the line level (an industrial structural unit of an SDE).

The Board of Directors of Gaznapfatrans annually adopts the Company's overall risk appetite, corporate risk Registrar, and map. The department responsible for risk management at Gaznapfatrans continuously monitors the dynamics of the major risks and the deployment of countermeasures. The Gaznapfatrans Board of Directors, Management Board, Risk Committee, and the Company's employees regularly exchange information, which demonstrates the Company's commitment to the development of a risk-aware culture.

The HR department is responsible for the formulation of personnel policies and procedures, manpower planning and staffing, compensation and rewards strategy, management of medical and welfare benefits, performance management, employment law compliance, facilitation of optimum working relationship with employees including the staff union, training, career and organisational development, employee communications as well as Office General Services.

Collective agreements are signed in KMG organizations with the goal of enhancing the social wellbeing of every employee of the company, enhancing employer and employee accountability for the outcomes of economic and production activities, and achieving the ideal balance of parties' interests within the context of social partnership. The group of companies has a standard collective agreement that has been approved by both the employer and the government of the Republic of Kazakhstan. It outlines the terms and common mechanisms for organizing labor compensation, working hours and breaks, occupational safety and health, employment of terminated employees, and social support.

Corporate Culture

Teamwork and esprit de corps are just as important as the highest degree of performance and personal dedication that Gaznapfatrans expects from each employee in order to achieve success. The company’s primary operating principle is safety.

The employee of Gaznapfatrans performs in accordance with the following values:

Business Conduct and Ethics Code

We have a Business Conduct and Ethics Code (the “Code”) that outlines the standards by which we can conduct our business affairs honestly, ethically, and with respect for one another. Gaznapfatrans is firmly devoted to following the highest standards of corporate ethics and conduct in its interactions with shareholders, the general public, vendors, contractors, customers, and other business partners. At the same time, Gaznapfatrans demands that all of our business partners uphold, behave in accordance with, and abide by the Code.

We think that the long-term economic success of Gaznapfatrans depends on relationships based on mutual benefit and trust. In all of its commercial dealings, the Company is dedicated to maximizing gains for all parties. Gaznapfatrans aims to maintain a long-lasting partnership with its business partners based on high performance standards, keeping its word, openness, and flexibility, as well as learning from others, mutual understanding and interdependence, and sharing success.