KazMunayGas (KMG) is a Kazakhstan operator for the exploration, production, refining and transportation of hydrocarbons. This national company represents state interests in the oil and gas industry of Kazakhstan. KMG was established in 2002 with headquarters in Astana. The structure of the KMG group includes 220 companies. KMG holds more than a quarter of the market for oil and gas condensate, as well a dominant position in oil refining and the pipeline transportation of crude oil and natural gas in the country. KMG is involved in the development of the largest oil and gas fields of the country, with a share of the oil fields in Tengiz (20%), Karachaganak (10%), and Kashagan (16.88%).
Brief chronicle of problems:
- The Environmental Department of Atyrau stated that the results of a comprehensive study of the impact of the Atyrau oil refinery (owned by KMG and other companies in 2007-2011) indicated multiple emissions that exceeded the maximum permissible concentration (MPC) of hydrogen sulfide, sulfur dioxide and nitrogen dioxide in city air (a city is defined as having a population of over 200 thousand people). At night, the study found an excess of hydrogen sulfide that was 140 times the MPC.
- Since 2013, residents of the village Peretaska have petitioned the Atyrau refinery plant management and authorities for relocation and fair compensation. Peretask became a part of sanitary protection zone due to the expansion of production.
- In June, workers of the KMG group (Karazhanbasmunay and UMG) in the city of Zhanaozen -- in the Mangystau region -- went on strike. The workers demanded increased salaries in line with international standards, improved working conditions, and the organization of an independent trade union. As a result of the strike, several hundred workers were dismissed and the lawyer and trade union leaders were arrested and convicted.
- On December 16th there were major riots involving police that ended with the shooting of some Zhanaozen workers. Fifteen people were killed, and dozens more were injured and arrested. As a result, 13 workers and 3 opposition activists were sentenced to imprisonment for terms ranging from 3 to 7 years.
- The joint venture of Lukoil and KazMunayGas company KazakhOilAktobe was fined 4.1 billion tenge (over $32 million) for the production of flared associated gasses without the permission of Kazakhstan's Ministry of Environment.