The size of oil and gas reserves of the Republic of Kazakhstan by themselves make national engine oil company of the united states called KazMunaiGaz (KMG), a superb addition to any research of national engine oil companies. The country's proven oil reserves are predicted between 9 billion and 17. 6 billion barrels, including both land and just offshore areas, as a potential developer of considerable influence. ("An Energy Summary of the Republic of Kazakhstan, " US Section of Energy, available from: http://www. fe. doe. gov/international/Russia_and_Central_Asia/kazkover. html#Oil ). When major new projects in Kazakhstan come to full production (probably by 2015), is likely to produce at least 3 million barrels of olive oil per day, which would make the united states larger company of oil compare to Norway, and it might be just behind Mexico and Iran. Even today Kazakhstan is in the list of one of the leading countries by producing 1. 29 million barrels each day (Energy Information Supervision. "Kazakhstan. " Country Evaluation Briefs, 2006. Available online at http://www. eia. doe. gov/emeu/cabs/Kazakhstan/Oil. html. ). And almost anyone interested in investing in Kazakhstan is forced to work, in one form or another, with Country wide Engine oil Company KazMunaiGaz (NC KMG).
NC KMG is also worthy of attention of these considering the changing framework of the international petroleum industry. The business is largely a work happening, one of the world's youngest countrywide oil companies, that could become a kind of model for other leading and changing national essential oil and the gas companies, especially those of the ex - U. S. S. R. , where is an important area of the world's untapped oil and gas reserves are found out.
KMG has some common similarity with other Country wide Oil Companies (NOC) created in post-Soviet says such as Russia, Azerbaijan and Turkmenistan. However, the government of Kazakhstan has identified a much more aggressive development mission for NC KMG than Azerbaijan's Authorities of SOCAR has for this. Unlike Russia, where there are two NOCs Rosneft and Gazprom, with rivalling hobbies, Kazakhstan has chosen to improve its holdings into one company. Yet, NC KMG has similarity with both Gazprom and Rosneft. The amount of vertical integration of Kazakh's KMG is comparable to that of Gazprom. Rosneft for the time being missing the same travelling and refining capacity of KMG or Gazprom, the actions of another similarly important similarity with the Kazakh business: both are trying to introduce european management styles in order to set-up internationally investing self-assurance. Unlike Rosneft, whose main asset of essential oil producing is Yuganskneftegaz, which was bought at auction following the seizure of Yukos, ( Peter Fin, "Russian Petrol Firm Purchases Mysterious Bid Winner, " Washington Post, Dec, 23 2004, A01) basically all of NC KMG property were obtained in a fairly straight forward way. They were either bought through purchase or by the copy of a state held license to the business.
NC KMG is much more likely to become backup for other post-Soviet NOC than any another company, basically due to its development strategy is both more self-explanatory looking and better formulated than their counterparts. The announced purpose of both Authorities of Kazakhstan and of KMG is the fact the business would become a sizable part of the public Corporation kept, with the federal government ensuring the safety of its pursuits through the voting of its shares by a larger holding company as a Samruk this means " Golden Phoenix" if translates from Kazakh to English, which created in 2006.
At the moment the partnership between KMG and the federal government of the Republic gets quite close, which specifically mean the partnership between the family of Leader of Kazakhstan, Nursultan Nazarbayev, and the country's essential oil industry. Those in key positions throughout the olive oil industry and federal government, including different ministries and professional level positions straight from the oil industry, understand the challenge that the reform of the the industry presents. They realize that KMG should be changed into an independent and clear company in the remaining years of President Nazarbayev 's mandate, which leads to 2013-a company that no more functions as an indirect instrument foreign policy or as a way to obtain internal corruption.
This statement will clarify that what's KMG's planning strategy, business plans and etc and how they will react to the obstacles which occurs in the company. Kazakhstan still confronts the duty of creating frequent investor confidence. The government's treatment of the international essential oil companies (IOCs) will partially put pressure to this assurance level. Success will also be based upon the development of the NC KMG itself, that's indicate the company should introduce a complete transparency in all its upstream and downstream spouse activities and whether it helps foster an atmosphere of competition in the service sectors that are associated with their main businesses.
The company will have to decide whether to stay a production company, or simply be considered a stakeholder in every major country's mining jobs, and the key transit partner and a key player in the downstream market of Kazakhstan.
Whatever decision the business makes, it is may still have to reduce at least a few of its resources, and try to be more focused on the acquisition of possessions. Without this it might be difficult to increase the worthiness of the investments for NC KMG. They should turn the business to be more reliable spouse for buyers within the united states. This requires the realization the process of political reform in Kazakhstan to provide a much better expression of privileges of traders and better legal cover to react to situations where investors consider their protection under the law have been violated. Obtaining these goals will reinforce NC KMG's position in the international oil industry and can help to set competitive edge over other similar olive oil companies. ( Offered by Baker institute: http://www. bakerinstitute. org/search?SearchableText=noc_kaz_Olcott. pdf )
When planning is done well, it creates a solid program for the management of other functions which is the arranging - the allocating and organizing of resources to perform the responsibilities; leading-guiding the initiatives of human resources to ensure a higher degree of performance tasks;
and control - surveillance on the accomplishments and taking necessary corrective action. The centrality of management planning is important to comprehend. In the current demanding corporation and persuading career environment is essential to remain one step prior to the competition. This implies always striving to be better at what you are doing and become action oriented.
In the planning process, objectives identify the specific results or desired final results that certain intends to accomplish. The program is a assertion of action steps to be studied in order to perform the objectives. Five steps in the look process are:
1. Explain your targets: Identify desired effects or results in very specific ways.
Know where you want to visit; be specific enough that you will know you have came when you get there, or understand how far off the symbol you are in various points along the way.
2. Determine predicament vis-a-vis aims: Evaluate current accomplishments relative to the required results. Know where you stand in reaching aims; know what strengths work in your favour and what weaknesses may hold you back.
3. Develop premises regarding future conditions: Anticipate future events; Generates option "scenarios" for what may happen; identify for each scenario things that might help or hinder progress toward your targets.
4. Analyze and choose among action alternatives: List and carefully assess possible actions. Choose the alternative(s) probably to accomplish your objectives; illustrate step-by-step what must be done to follow the chosen course of action.
5. Implement the program and examine results: Do something and carefully assess your progress towards goals. Do what the plan requires, examine results, take corrective action, and revise plans as needed.
One thing is certain, the dynamic use of fossil fuels in the country is key to any development strategy. Chief executive of the united states has used two use of coal and oil to boost the overall economy development in two ways, both through the introduction of a National Account, which is making an investment state's earnings from coal and oil and other key resources, into a finance that is loosely modeled on nationwide oil finance in Norway.
This fund, founded in 2001, is currently believed at 14. 1 billion U. S. dollars, and designed to provide long term support for the budget of the Republic of Kazakhstan and compensate irregular income triggered by fluctuations on the globe coal and oil market The spouse of the formula is the conception of a solid national oil and gas company.
It is to truly have a prominent position in the hydrocarbon sector in the united states. As a result of this, finally, the Joint-Stock Company KazMunaiGaz Country wide Company was founded under Decree of the Leader of the Republic of Kazakhstan No. 811 from February 20, 2002.
The beginning of the industry of Kazakhstan after freedom in 1991 brought many foreign buyers who helped buy the industry. These investors signed Production Service Association's (PSA) with NC KMG's predecessor Kazakhoil, however the companies which produces things EMG (EmbaMunaigaz) and UMG (UzenMunaigaz), the main investments of KazMunaiGaz Exploration and Creation (KMG E and P), were't used in Kazakhoil until 1997.
On 16th March, 2004 the company was renamed Joint Stock Company KazMunai Gaz National Company. The business was founded with the goal of comprehensive development oil industry of the Republic to ensure a logical and efficient operation hydrocarbons, which would donate to social and economic development of Kazakhstan and its successful integration in to the world of market and olive oil industry. (KazMunaigaz (KMG), "Company History and Quest, " KazMunaiGaz website, http://www. kmg. kz/main. php?page=inc/posted&mid=4&showm=3&type=men. )
One of the main plans of Authorities of creation of NC KMG was that creation would help to achieve a variety of strategic targets including increased financial and economical aspects of the company, furthermore, additional to its hydrocarbon reserves and increasing creation. The purpose was to take action through lessening of costs and increasing cashflow, by increasing the efficiency of capital investment, to increase reserves through the exploration of new blocks for exploration and extension of existing ones, the maximize their shares in existing companies. These were also to enhance the economic revenues to the united states through large oil and gas projects in which they had a lovers, and also through the introduction of transportation opportunities available to Kazakhstan, and by aiding the introduction of petrochemical companies in Kazakhstan. They were also billed with increasing the number the proportion of domestically produced goods, works and services which is aiding the country's most significant oil and gas projects. Additionally to the they assisted to increase the amount of Kazakhstani officials immediately involved in these jobs.
JSC "NC KazMunaiGaz" is among three most significant oil producers in Kazakhstan and has a minority in almost all major assignments of coal and oil in the country which controls involvement in most assignments initiated since 2000. The company employsover thirty-four thousand employees and reported income of $ 4. 8 billion us dollars in 2005 from its business activities. KMG has got control over twenty-five companies. ( KazMunaiGaz, "Structure of Belongings, " KazMunaiGaz Website, http://www. kmg. kz/index. cfm?tid=22 )
The future form of KMG is obviously unclear, not limited to oil experts industry, but also for those working in KMG and the government of Kazakhstan as well. The company still should determine whether to remain a retaining company, and even if indeed they do still want to keep carefully the role of working ones in a few projects. They'll still have to decide how quickly and exactly how completely sell its stakes in Kazakhstan's various oil and gas projects. For the near future I think it will be difficult to contend with potential foreign shareholders, because of company's poor scientific base and good luck of talents in financial competitiveness of these operations.
According to the financial liquidity of the business, there must be a disagreement about lowering their holdings in certain projects. This provides funds for overseas investments and and downstream, which could provide KMG with permanent usage of energy belongings for enough time when domestic production in Kazakhstan begins to decline.
The Kazakhstani people appear to assume that moving away from production and draft management will slow capacity building among the Kazakh people and slow the development of auxiliary business related to fossil energy development. But the creation National Account of Kazakhstan is supposed in part to aid the introduction of areas of the overall economy which is not depend on resource removal.