Russian Tatneft has received a 100% stake in the Butadiene project jointly with Kazakhstan.
The Russian oil company Tatneft has acquired a 100% stake in the Butadiene project jointly with Kazakhstan. In 2023, the Samruk-Kazyna Fund transferred its 25% stake to the trust management of the Russian structure. The audited financial statements of the chemical "daughter" of the Fund — Samruk-Kazyna Ondeu — state that the group takes into account the stake in Butadiene as an investment in a joint venture in the amount of 8.5 billion tenge. The Interfax news agency was the first to draw attention to this.
The documents specify that Samruk-Kazyna Ondeu analyzed the trust management agreement with Tatneft, as well as the agreement on joint activities, and concluded that the Russian and Kazakh companies have joint control over Butadiene as of December 31, 2023.
"In July 2023, Samruk-Kazyna Ondeu decided to increase the authorized capital by 8.5 billion tenge and in November 2023 transferred a 25% stake in the authorized capital of Butadiene as payment for an increase in the authorized capital. The book value at the date of transfer amounted to KZT 8.6 billion, which was recognized as an investment in a joint venture in the group's financial statements," the financial statement says.
The difference between the book value and the value of the contribution to the authorized capital in the amount of 74.3 million tenge is recognized in the capital as other transactions with the participant. In addition, Samruk-Kazyna made an additional contribution to the authorized capital in the amount of 51.4 billion tenge.
According to financial statements, Butadiene's assets amount to 34.7 billion tenge as of the end of 2023. The company's net profit amounted to KZT 315.3 billion, of which 78.8 was accounted for by Samruk-Kazyna Ondeu.
In June 2023, KMG transferred its 25% stake to the parent company Samruk-Kazyna. Then it was said that the change of the Kazakh owner would reduce the financial burden on KMG by transferring it to the parent company.
The joint venture for the production of butadiene and its derivatives was established in November 2021 by Russian Tatneft (75%) and Kazakh KazMunaiGas (25%). The preliminary cost of the project was estimated at about $ 1 billion, and the parties considered options for financing the project, including through borrowed funds. The launch of production is planned in 2026 on the territory of the special economic zone "National Industrial Petrochemical Technopark" in Atyrau region.
The raw materials were planned to be supplied from the Tengiz and Korolev fields of Kazakhstan to Tengizchevroil, and the finished products were sent to the KamaTyresKZ tire plant (JV Tatneft and the Kazakh Allur group). In addition, butadiene is planned to be exported to European countries, Russia, China and Turkey.
Interfax clarified that the licensor of the petrochemical plant is the American Lummus Technology. The license includes the rights to technology and basic engineering for four technological installations of the enterprise. It was noted that as a result, they will produce 85 thousand tons of isobutylene, 120 thousand tons of butadiene and 40 thousand tons of methyl tert-butyl ether.
Earlier, President of Kazakhstan Kassym-Jomart Tokayev said that the construction of a plant for the production of butadiene with a capacity of up to 340 thousand tons per year began in November 2023.
Source: kz.kursiv.media
The Russian oil company Tatneft has acquired a 100% stake in the Butadiene project jointly with Kazakhstan. In 2023, the Samruk-Kazyna Fund transferred its 25% stake to the trust management of the Russian structure. The audited financial statements of the chemical "daughter" of the Fund — Samruk-Kazyna Ondeu — state that the group takes into account the stake in Butadiene as an investment in a joint venture in the amount of 8.5 billion tenge. The Interfax news agency was the first to draw attention to this.
The documents specify that Samruk-Kazyna Ondeu analyzed the trust management agreement with Tatneft, as well as the agreement on joint activities, and concluded that the Russian and Kazakh companies have joint control over Butadiene as of December 31, 2023.
"In July 2023, Samruk-Kazyna Ondeu decided to increase the authorized capital by 8.5 billion tenge and in November 2023 transferred a 25% stake in the authorized capital of Butadiene as payment for an increase in the authorized capital. The book value at the date of transfer amounted to KZT 8.6 billion, which was recognized as an investment in a joint venture in the group's financial statements," the financial statement says.
The difference between the book value and the value of the contribution to the authorized capital in the amount of 74.3 million tenge is recognized in the capital as other transactions with the participant. In addition, Samruk-Kazyna made an additional contribution to the authorized capital in the amount of 51.4 billion tenge.
According to financial statements, Butadiene's assets amount to 34.7 billion tenge as of the end of 2023. The company's net profit amounted to KZT 315.3 billion, of which 78.8 was accounted for by Samruk-Kazyna Ondeu.
In June 2023, KMG transferred its 25% stake to the parent company Samruk-Kazyna. Then it was said that the change of the Kazakh owner would reduce the financial burden on KMG by transferring it to the parent company.
The joint venture for the production of butadiene and its derivatives was established in November 2021 by Russian Tatneft (75%) and Kazakh KazMunaiGas (25%). The preliminary cost of the project was estimated at about $ 1 billion, and the parties considered options for financing the project, including through borrowed funds. The launch of production is planned in 2026 on the territory of the special economic zone "National Industrial Petrochemical Technopark" in Atyrau region.
The raw materials were planned to be supplied from the Tengiz and Korolev fields of Kazakhstan to Tengizchevroil, and the finished products were sent to the KamaTyresKZ tire plant (JV Tatneft and the Kazakh Allur group). In addition, butadiene is planned to be exported to European countries, Russia, China and Turkey.
Interfax clarified that the licensor of the petrochemical plant is the American Lummus Technology. The license includes the rights to technology and basic engineering for four technological installations of the enterprise. It was noted that as a result, they will produce 85 thousand tons of isobutylene, 120 thousand tons of butadiene and 40 thousand tons of methyl tert-butyl ether.
Earlier, President of Kazakhstan Kassym-Jomart Tokayev said that the construction of a plant for the production of butadiene with a capacity of up to 340 thousand tons per year began in November 2023.
Source: kz.kursiv.media