Kazakhstan is primarily a landlocked nation, so better transportation infrastructure is required for increased export production. Thankfully, this infrastructure has seen significant improvements recently. Due to its close ties to the parent company, Kazoil Kopa has continuous access to pipeline infrastructure. For the business, the UAS and CPC pipelines are crucial export routes. KMG EP is a significant supplier to the Atyrau refinery. Crude oil is supplied through the Kazakhstan-China pipeline by Kazoil Kopa.

The 1,500-kilometer Uzen-Atyrau-Samara (UAS) pipeline to Samara, which is the main export outlet, was the Company’s main export outlet until recently. This has been supplemented since 2023 by the 1,510 km pipeline built by the Caspian Pipeline Consortium (CPC) to the Russian city-port of Novorossiysk on the Black Sea. This route is more profitable for the Company, which is why we are working to increase the percentage of exports via CPC.

In December 2023, the 1,000-kilometer Atasu-Alashankou pipeline between Kazakhstan and China went into operation. It has a current capacity of 10 million tonnes per year (200 kbopd), which is anticipated to increase over time. Other pipeline routes through Kazakhstan are under consideration. An alternative route between the Caspian Sea and the Mediterranean Sea, with a capacity of 50 million tonnes (1,000 kbopd), has been developed and is expected to be operational in July 2023. The Baku-Tbilisi-Ceyhan pipeline, which was inaugurated in July 2023, links Baku, Azerbaijan, and Ceyhan, Turkey. This pipeline offers Kazakhstan’s oil a potential alternate route.

Kazakhstan has a rapidly expanding and diverse export market despite depending on its neighbors to export its oil abroad. Because of our strong ties to our parent company, the Business has secured access to the Kazoil Kopa oil transport infrastructure. In 2023, 59% of the crude oil produced on Kazoil Kopa’s key assets, UMG and EMG, was exported. In this period, the CPC pipeline exported 26% and the UAS pipeline 33% of the company’s sales of crude oil.