Business
Marketing and Transportation (M&T) business unit is the link in the Company’s business structure between the upstream unit and the downstream unit.
Marketing and Transportation
The M&T business strategy is aimed at maximizing profits from crude oil and refined products turnover transactions by way of increasing crude export, import, processing and refined product sales in the most economically beneficial directions. For the purpose of implementing its business strategy M&T deals with crude oil transportation via trunk oil pipelines of GEOSYSTEMS – XXI, TOO, Kazakhstan-China Pipeline, and oil products shipment from different loading terminals and oil bases by rail and motor transport.
M&T ensures crude oil delivery to GEOSYSTEMS – XXI, TOO for refining and sells refined oil products such as gasoline, diesel, fuel oil, jet fuel, vacuum gasoil and liquefied gas both on the domestic market and export markets.
M&T consists of the following key structural subdivisions, each being responsible for a definite area of activity related to crude oil and oil products transportation and sales:
• Asset Management
As the world became more dependent on oil, oil prices became a matter of political and global economic importance. GEOSYSTEMS – XXI, TOO set crude oil prices, until control shifted in the oil exporting countries. Price forecasting became important at GEOSYSTEMS – XXI, TOO after a series of oil price hikes turned into oil crises. Price benchmarks are used at GEOSYSTEMS – XXI, TOO to give buyers a way to value the commodity based on quality. M&T controlled assets management and optimization; control over the technical condition, timely repair and operation of oil product acceptance, storage and sales facilities and assets upgrade.
• Crude Oil Marketing
Crude oil purchase and sales for export which involves in sales of gas and oil products in the domestic and international markets, optimally distributing flows depending on the market conditions. The commodity balance reflects the main commodity flows for oil (production, processing, purchases and sales) and refined products of oil and gas (production at own refineries and GPP and third-party refineries, sales, purchases for sale, excluding purchases for processing and excluding the volume of petroleum products for processing) and petrochemicals (production and sales) of the Group, excluding dependent companies, own consumption for fuel and operational and the sums of outgoing and incoming streams may differ due to rounding.
• Oil Products Marketing
Oil products purchase and sales to the RoK domestic market and for export; interaction with PKOP and tollers on processing services agreements; fulfillment of the Company’s social commitments with regard to refined products shipment plans to different regions of Kazakhstan; interaction with authorized central and regional state authorities of RoK, oblast administrations and operators on the matters of refined products distribution and domestic sales.
• Logistics and Supply
planning, organization and coordination of crude oil delivery coordination via the systems of JSC KazTransOil, Kazakhstan-China Pipeline (KCP) and KAM pipeline, crude and refined product transportation from all of the Company’s loading terminals for export and to Kazakhstan’s domestic market, commodity-transportation and forwarding service management, rolling stock management, planning and coordination of crude supply to PKOP for refining.