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Monday, June 26, 2017

KazTransOil announces new tariff on oil substitution at Pavlodar Petrochemical Plant

KazTransOil, Kazakhstan's national oil transporter, recently announced the imposition of a new $9 tariff on the substitution of oil in the pipelines at the Pavlodar Petrochemical Plant.

"KazTransOil JSC adopted the mentioned order in accordance with the Law of the Republic of Kazakhstan 'On Natural Monopolies and Regulated Markets' and subject to the joint order of the Republic of Kazakhstan Agency on Regulation of Natural Monopolies (Agency order #404-OD dated December 30, 2013) and the Ministry of Oil and Gas of the Republic of Kazakhstan (Ministry order #224 dated December 30, 2013) 'On the approval of the List of services technologically associated with regulated services (goods, works) of transportation of oil and (or) petroleum products by pipelines,'" the company said.

KazTransOil accounts for 80 percent of all oil transported in the country. It is a subsidiary of KazMunayGas, the national oil and gas company.

In July 2012, Standard & Poor's assessed KazTransOil's SACP at "bb+" on the basis of the ratings agency's opinion of its "satisfactory" business risk profile and "significant" financial risk profile.

KazTransOil's stand-alone credit quality is supported by long-term ship-or-pay contracts with oil producers, the company's favorable debt structure and maturity profile, limited competition from alternative oil export pipelines, and good prospects for oil production and export in Kazakhstan.