PetroKazakhstan
| Company type | Subsidiary |
|---|---|
| Industry | Oil and gas |
| Predecessor | Hurricane Hydrocarbons Ltd. |
| Founded | 1981 |
| Defunct | 2006 |
| Fate | Acquired by China National Petroleum Corporation; ownership transferred to PetroChina |
| Headquarters | Calgary , Canada |
Area served | Kazakhstan |
Key people | Bernard Isautier (former CEO) |
| Products | Oil, natural gas |
| Owner | PetroChina (since 2006) |
| Parent | China National Petroleum Corporation (until 2006), PetroChina (from 2006) |
PetroKazakhstan is a Canadian-based oil enterprise headquartered in Calgary, Alberta, with operations concentrated solely in Kazakhstan. As of January 2005, the company controlled roughly of oil and of natural gas reserves located in the Turgai basin, positioning it as Kazakhstan’s second-largest holder after ChevronTexaco's TengizChevroil. Production estimates were approximately per day. In 2005, PetroKazakhstan was acquired by China National Petroleum Corporation, and its ownership was transferred to PetroChina in 2006.
Origins — Hurricane
Initially established in 1981 as Hurricane Hydrocarbons Ltd., the firm began operations within Western Canada before redirecting its focus internationally. Following significant hydrocarbon discoveries in Southern Kazakhstan, Hurricane entered into a joint venture in 1991 to develop the Kyzylkiya, Aryskum, Maibulak, and South Kumkol fields.
In 1996, Hurricane expanded its footprint by acquiring Yuzhneftegaz from the Kazakh government, becoming one of the dominant oil producers in the nation.
During the late 1990s, Hurricane encountered difficulties due to all extracted oil being processed at refineries owned by Central Asian Industrial Holdings N.V. (CAIH), an affiliate of Kazakhstan’s principal bank, Kazkommertsbank (KKB). This entity exploited its refinery monopoly to impose elevated prices amid declining oil markets, resulting in Hurricane entering receivership in 1999.
Bernard Isautier, a board member with extensive experience in both Canadian and Central Asian petroleum industries, assumed the role of CEO and orchestrated a merger with CAIH. Between late 1999 and 2000, Hurricane acquired an 88.4% stake in OJSC Shymkentnefteorgsintez (currently PetroKazakhstan Oil Products LLP), owner of the Shymkent Oil Refinery—a facility with a capacity of 160,000 bpd and recognized as Kazakhstan’s most advanced refinery since its commissioning in 1985. This transaction resulted in CAIH receiving a 30% equity share in Hurricane but ultimately secured the company’s survival.
The merger considerably enhanced shareholder value, notably benefiting Isautier, who initially waived salary compensation and instead received stock options. By 2004, he ranked among Canada’s top-paid executives due to substantial appreciation in company shares.
Renaming as PetroKazakhstan
In 2003, Hurricane adopted the name PetroKazakhstan to signify its exclusive operational focus within Kazakhstan.
Following this rebranding, PetroKazakhstan encountered disputes with Kazakh authorities, including penalties for alleged anti-competitive conduct and protests related to environmental and labor concerns reportedly involving government agents. In June 2005, the company disclosed interest in a potential acquisition or merger, which temporarily increased its stock valuation. The primary bidder was a subsidiary of India’s ONGC. However, share prices declined after Kazakhstan asserted preemptive rights over any acquisition attempts, partly motivated by apprehensions that Indian exports would transit Russia, thereby heightening Kazakhstan’s dependence on Russian routes.
Acquisition by CNPC and Transfer to PetroChina
On 21 August 2005, China National Petroleum Corporation (CNPC) agreed to purchase PetroKazakhstan for US$4.18 billion via CNPC International Ltd., marking China’s largest overseas corporate acquisition at that time. Subsequent to this agreement, PetroKazakhstan was removed from stock exchanges in Kazakhstan, Toronto, New York, London, and Frankfurt.
In compliance with Kazakhstan’s Law on Subsoil Use, CNPC consented on 15 October 2005 to divest a 33% stake of PetroKazakhstan back to KazMunaiGas (KMG), a transaction finalized by July 2006. Later on 6 July 2007, KMG reacquired a 50% interest in PetroKazakhstan’s subsidiary PetroKazakhstan Oil Products LLP (PKOP), restoring equal government ownership over the nation’s most sophisticated refinery.
In 2006, CNPC transferred its remaining 67% holding to China Petroleum Engineering & Construction Company (CPECC), a joint venture affiliated with publicly listed PetroChina, which currently oversees the management and operations of PetroKazakhstan.
See also
- Shanghai Cooperation Organisation – comprising both China and Kazakhstan
External links
- Articles with short description
- Former Canadian oil and gas companies
- Kazakhstani oil and gas enterprises
- Companies headquartered in Calgary
- Energy firms founded in 1981
- Non-renewable resource firms established in 1981
- Non-renewable resource firms dissolved in 2006
- 1981 establishments in the Kazakh SSR
- 2000s closures in Kazakhstan
- Defunct Alberta-based companies
- Inactive energy companies in Kazakhstan
- Companies previously traded on the London Stock Exchange
- Canadian firms closed in 2006
- Canadian firms founded in 1981
- China National Petroleum Corporation