Could you give us
an overview of the economic situation in Kazakhstan
and the future of the energy sector?
It is observed that Kazakhstan has grown very fast
during the last 10 years. So, according to the estimates
of oil reserves, we can say that in the nearest
future Kazakhstan will become a strong oil state.
Due to the fact that Kazakhstan and Russia have
a very extensive borderline and the same historical
background we can say that the oil sector in Kazakhstan
as well as in Russia is very dynamically developing
right now.
We distribute oil products throughout the Kazakhstani
market. We work with such large companies as Kazakhmys,
Kazzinc, Ispat Karmet, and Aluminum Kazakhstan,
which are our wholesale customers. We also work
with many small companies that consume fuels and
conduct retail sale through our gas stations network.
Before getting to the services your company offers
on the Kazakhstani market, could you tell us about
the historical background of your company, how it
all started?
Our company has been working here for three years.
We started our activity from one gas station and
with the staff consisting of 25 people. Now we have
a network consisting of 130 gas stations with 1500
employees. The reason of our rapid development is
that during the first years of our operations, we
worked with the American Company "Golden Eagles
Partners". This company was very experienced
due to its work with "Chevron" company
in retail sector: construction and reconstruction
of gas stations including the detailed processes
of this complex area. As you know "Chevron"
and "Texaco" companies have existed for
hundred years and have a huge experience behind.
So we have decided to not invent something new,
like a bicycle but we have decided to rely upon
their experience and use it. I think if we go our
own way we will make different mistakes and waste
our time. In cooperation with these companies we
constructed new modernized gas stations. At first,
it was very costly for us; we were trying to save
money all the time. However, our American partners
said to us that we were not supposed to save money
on this. This year, we reviewed our company's strategy
and experienced a dynamic development of our activities.
We have had different gas stations constructed.
Speaking in oil producers' language we call it "gas
station musculature". I will explain in brief
how this process is going on in Kazakhstan. For
example, this is Kazakhstan: three refineries exist:
in Atyrau, Pavlodar and Shymkent. The following
companies operate here: "HurricaneKumkolMunai",
"KazMunaiGas", and "Helios".
"HurricaneKumkolMunai" extracts crude
from the oil reserve Kumkol in Kyzylorda. HKM mainly
exports crude and practically has got a few service
stations. The same situation is with "KazMunaiGas"
company, which receives crude from the local market
and have a limited number of service stations.
"Helios" is the only company that works
with gas stations. The Atyrau Refinery gets oil
from Western companies operating in Uzen, Karachaganak
and Kalamkas. Pavlodar refinery is the only one,
which is located far away and is connected to Russia
through the pipeline. That's why; according to the
government decision, 51% of Pavlodar refinery's
shares belong to "MangistauMunaiGas".
The rest 49% of shares are owned by the Pavlodar
refinery itself. So, "MangistauMunaiGas"
is a head (mother) company of all three companies
(MMG, Pavlodar refinery and Helios - vertically
integrated company). Together with Pavlodar it is
like the one big complex. MangistauMunaiGas extracts
oil in Aktau, then transports it to Samara, Russia
via Atyrau. Its output is 360 thousand tons of oil
per month. Out of this number, 200 thousand tons
are exported to Samara; 150 thousand tons of oil
are transported to Pavlodar, through two companies:
TNK and Lukoil. "MangistauMunaiGas" transports
oil to TNK, then TNK to Omsk, then to Pavlodar.
This system is called "Scheme of mutual records".
After that Pavlodar refinery processes all oil and
transports the oil products to "Helios",
which distributes them.
There are three main competitors in the oil products
market: "KazMunaiGas", "ShNOS"
and "Helios". "Helios" is the
only dymanic company in retail sector. As I have
already mentioned, we have 130 gas stations and
also several big subsidiaries in big cities. ShNOS
is involved in wholesale. That's why, the oil sector
is affected by the fluctuations in oil prices. Only
due to the existence of the developed network of
gas stations we can stabilize these prices. It has
been already told that the first year we worked
with "Chevron" company and as a result
of it we stick to this kind of services: high quality,
reasonable price. Thus, we work only with the Pavlodar
refinery products. This is a mechanism of the Kazakhstani
oil market. |
Could you tell more
on your competitors?
As I already mentioned there are three big companies.
"Helios" is the only big provider of oil
products. So, our competitors are the small companies
that operate in different regions. Right now it
is time of fight between us and these small companies.
We think we will win because we have a broad experience,
including international, like working with TNK and
Lukoil. You often can hear from people that "Helios"
sounds like Kazakh "Lukoil".
May be you can share some financial figures with
our readers about the "Helios" company's
activities?
Our annual turnover is $190 million. Two million
tons of oil processed at the Pavlodar refinery.
Pavlodar refinery participates only in processing
oil, but it doesn't take part in distribution and
sale. These are two important figures we have.
Do you have any partnership with foreign and
domestic companies?
We have partnerships with Russian companies: TNK
and Lukoil. We have about three thousand of corporate
clients, which buy our oil products. On the wholesale
level we work with big industrial companies. The
Pavlodar refinery also produces railroad construction
bitumen (coverage for highways). The year 2001 President
of our Republic announced as "the year of roads".
As you know roads in Kazakhstan are in a very bad
condition. That's why the huge investments are expected
in this sector. Helios is a main supplier of bitumen
in Kazakhstan.
Could you tell more on products that you offer?
Pavlodar refinery processes crude and Helios is
selling a range of its oil products exclusively,
where:
Diesel fuel - the main our consumer is agricultural
sector.
Kerosin - "Air Kazakhstan", Airports of
Kazakhstan;
Fuel oil - "Ispat Karmet", "Kazakhstan
Aluminum" and China;
Mazut - "Ispat Karmet"
Bitumen - "KazakhAvtoDor", all organizations
constructing roads;
Gas - the most social oil product, which is used
for cooking and heating.
For every product we have different clients and
prices. Petrol is distributed to gas stations, bitumen
is distributed on a governmental level. Right now
we are trying to implement more gas stations since
the price of petrol is increasing in Kazakhstan
all the time. Of course, in comparison with Europe
countries our prices are twice cheaper.
Could you tell us more about your future projects
in Kazakhstan and CIS?
We have a plan according to which we hope to increase
the number of our gas stations up to 150 by June
2003. We want to differentiate the product assortment.
These products will be distributed in the regions
of the Republic without the middle level dealers
(middlemen) at the cheapest prices. This is our
brief plan for the future. On the 2nd of September
we participated in a conference conducted in London,
concerning the development of petrol stations that
meet European standards. Like the standards of "British
Petroleum" in management and development. At
this conference we have gained a lot of useful and
necessary information which gives us an idea how
to develop and expand our business. Moreover, we
visited London gas stations where we were introduced
to western standards on making business in this
sphere. We are much more encouraged now, and have
more plans and ideas to be implemented in the near
future.
We believe in Kazakhstan and it's prospective future.
Kazakhstan is not only full of resources, but it
has a potential to have a highly developed infrastructure.
For instance, the super modern refineries that would
produce oil products of high quality, companies
that would distribute these oil products at the
high quality level in order them to be used by Kazakhstani
citizens and by guests as well.
Could you tell us a little about your professional
experience?
I have been working in oil and gas sector for 10
years. I worked at Shymkent oil refinery (ShNOS)
when it was state-owned, in the sales department.
In a year 1998 I worked at the Pavlodar oil refinery
as a Commercial Director. We worked on the construction
of gas stations all the time and I know this sector
very well. Since 1999 I have been working at "Helios".
Could you give a final message to our readers?
To prospective investors in Kazakhstan we wish peace,
happiness, prosperity and wealth to all families.
Welcome to Kazakhstan! |
