Press release
KMG Kashagan B.V. press release
29 October 2021
KMG Kashagan B.V. fulfilled obligations ahead of schedule under the transaction with Vitol
Early fulfillment of these obligations became possible thanks to measures to optimize cash flows and favorable oil prices.
As a reminder, in 2016, KMGK held a tender to select an international trader as part of a prepayment transaction for oil supplies attributable to KMGK's participation share in the North Caspian Production Sharing Agreement (hereinafter referred to as the NC PSA). The key condition of the tender was the provision of long-term advance payments on acceptable market conditions. As a result of the tender, the contract was signed with the largest international trader - Vitol SA. The total amount of the received advance payments for the period 2016-2018 amounted to USD 2.2 billion.
The funds received were used to pay off the debt to the Contracting Companies in connection with the purchase by KMGK of an 8.48% share in the NC PSA in 2008.
The oil supply contract will remain in effect until December 2025.
9 August 2018
KMG Kashagan B.V. (KMGK) announces successful finalization of the second upsizing of the prepayment deal organized for the purpose of raising funds for the repayment of the third and final installment under the Sale and Purchase agreement signed on October 31, 2008 (SPA 2008) for acquisition of the KMGK’s participation share 8.48% in Production Sharing Agreement in respect of North Caspian Sea.The additional agreements to the documentation concluded on November 29, 2016 between KMGK as a Seller and Heston B.V. as a Buyer (offtaker – Vitol S.A.) were signed on July 27, 2018
The increase of the Prepayment amount is USD 600 mln which was received on August 7, 2018. Thus, as of today the total Prepayment amount is USD 2.2 bln.
Funds received from the Prepayment amount upsizing were used for the repayment of the final installment under SPA 2008, thus the obligations of KMGK under SPA 2008 were repaid in full ahead of schedule.
Within the Prepayment amount upsizing the total number of creditors now consists of 15 participants, including Vitol SA.
24 April 2018
The prepayment deal for the oil deliveries, signed on 29.11.2016 between KMG Kashagan B.V. and the international trader, Vitol S.A. for the amount of 1 billion US dollars which was later increased up to 1,6 billion US dollars (Prepayment Deal) has won a place in TXF Perfect 10 Deals of the Year in the nomination “Commodity Energy Finance Deal of the Year” according to the leading information provider, TXF (Trade & Export Finance).The Prepayment Deal was signed in order to raise finance for the repayment of the obligations under the Sales and Purchase Agreement dated 31.10.2008 and concluded for the acquisition of 8.48% participation share in the Production Sharing Agreement in respect of North Caspian Sea among KMG Kashagan B.V. and Contracting Companies.
Prepayment Deal details:
Borrower: Heston B.V.
Prepayment recipient: KMG Kashagan B.V.
Offtaker: Vitol S.A.
Amount: $ 1,6 billion
Signed: 4 August 2017
Tenor: 5 years
Mandated Lead Arrangers and bookrunners: ABN AMRO Bank N.V., The Bank of Tokyo-Mitsubishi UFJ, Ltd., Mizuho Bank Ltd., Cooperatieve Rabobank U.A., Sumitomo Mitsui Banking Corporation
Lead arrangers and bookrunners: Credit Agricole Corporate & Investment Bank, Intesa Sanpaolo S.p.A.
Coordinator and Lender: Vitol S.A.
Lead arrangers: Bank of China Limited, Industrial and Commercial Bank of China Limited, Societe Generale, UniCredit S.p.A., Credit Suisse AG, Natixis
Legal Counsel (Borrower): FieldFisher
Legal Counsel (Lender): Herbert Smith Freehills
Source https://www.txfnews.com/News/Article/6394/Perfect-10-Winners-2017-The-big-the-bold-and-the-brainy
15 August 2017
On August 04, 2017 in order to finance the repayment of the second instalment under the Sale and Purchase Agreement dated 31 October 2008 (SPA 2008), which was concluded for acquisition of 8.48% participation share in Production Sharing Agreement in respect of North Caspian Sea, a number of additional agreements were signed for upsizing of the amount of the Prepayment transaction between KMG Kashagan B.V. (KMGK) and Vitol S.A. dated November 29, 2016 (Prepayment Transaction).
On August 10, 2017 KMGK received additional Prepayment in the amount of 600 mln. US dollars and made early repayment of the second instalment under SPA 2008 in the total amount of 804,4 mln. US dollars (including principal amount and interest accrued).
Due to the Prepayment Transaction upsizing the number of creditors participating in the syndicate was increased up to 13 including among other participants the following New Lead Arrangers:
1. Bank of China LTD, London Branch
2. Industrial and Commercial Bank of China Ltd, London Branch
3. Industrial and Commercial Bank of China Ltd
4. Societe Generale
5. Unicredit S.P.A.
6. Credit Suisse AG
7. NATIXIS
24 February 2017
KMG Kashagan B.V.
USD 1 billion Export Prepayment Facility
Press Release
On 29 November 2016 KMG Kashagan B.V. successfully signed a USD 1 billion 5-year Export Prepayment Facility (“the Facility”), with Vitol as “Offtaker”.
A total of 8 institutions supported the Facility with Vitol acting as Coordinator, ABN AMRO Bank as Security Agent and Agent, and the Bank of Tokyo-Mitsubishi UFJ as Documentation Bank.
The participating institutions and their respective roles are detailed below:
Bookrunners
ABN AMRO Bank N.V.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mizuho Bank, Ltd.
Cooperatieve Rabobank U.A.
Sumitomo Mitsui Banking Corporation, Brussels Branch
Credit Agricole Corporate & Investment Bank
Intesa Sanpaolo S.p.A., Paris Branch.
Mandated Lead Arrangers
ABN AMRO Bank N.V.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mizuho Bank, Ltd.
Cooperatieve Rabobank U.A.
Sumitomo Mitsui Banking Corporation, Brussels Branch
Vitol S.A.
Lead Arrangers
Credit Agricole Corporate & Investment Bank
Intesa Sanpaolo S.p.A., Paris Branch.
About KMG Kashagan B.V.
Private Company with Limited Liability “KMG Kashagan B.V.” (“KMGK”) was incorporated in October 2005 by Joint Stock Company “National Company “KazMunayGas”. The primary intent of KMGK is to manage 16,88% participating interest in the Production Sharing Agreement in respect of the North Caspian Sea as of November 18, 1997 (“PSA”) entered into between the Republic of Kazakhstan and a consortium of international oil companies.
About KazMunayGas – Parent Company (50% shareholder in KMG Kashagan B.V.)
National Company “KazMunaiGas” is an oil and gas company operating in exploration, production, refining and transportation of hydrocarbons, representing the state interest in the oil and gas industry of Kazakhstan. KazMunaiGas Group occupies over a quarter of the Kazakhstan market on production of oil and gas condensate as well as a dominant position in oil refining, pipeline transportation of oil and natural gas in the country. Kazakhstan is ranked 12th in the world proven reserves of oil and gas condensate, 22nd in natural gas reserves and 17th in oil and gas production.
About Samruk-Kazyna – Parent Company (50% shareholder in KMG Kashagan B.V.)
“Samruk-Kazyna” is a Sovereign Wealth Fund of the Republic of Kazakhstan, and was founded in accordance with the Decree of President of the Republic of Kazakhstan by merge of two joint stock companies Kazakhstan Holding for the Management of State Assets SAMRUK and KAZYNA Sustainable Development Fund.
“Samruk-Kazyna” was established in order to enhance competitiveness and sustainability of national economy. The key purpose of “Samruk-Kazyna” is to manage shares (interests) of national development institutions, national companies, and other legal entities it owns to maximize their long-term value and competitiveness in the world markets.
About Vitol
Vitol is an energy and commodities company; its primary business is the trading and distribution of energy products globally – it trades over 6 mbpd of crude oil and products and, at any time, has 200 ships transporting its cargoes.
Vitol’s clients include national oil companies, multinationals, leading industrial and chemical companies and the world’s largest airlines. Founded in Rotterdam in 1966, today Vitol serves clients from some 40 offices worldwide and is invested in energy assets globally including; over 17.9 mm3 of storage across six continents, 390 kbpd of refining capacity and Shell-branded downstream businesses in 16 African countries, as well as Australia. Revenues in 2015 were $168 billion. For more information: www.vitol.com.