Our Company Marketing Strategy

The Marketing Strategy business unit integrates our company's upstream segment with the broader business structure. The goal is to maximize profits from crude oil and refined product transactions by expanding crude export, import, processing, and refined product sales in the most cost-effective directions. We aim to manage crude oil transportation via our trunk oil pipelines and distribute oil products from various loading terminals and bases using rail and motor transport to fulfill our business strategy. 

Our company ensures the delivery of crude oil for refining and offers refined oil products such as gasoline, diesel, fuel oil, jet fuel, vacuum gas oil, and liquefied gas in both domestic and export markets. Our marketing strategy comprises the following core subdivisions, each responsible for specific operations related to the transportation and sale of crude oil and oil products:  

(1) Handles crude oil purchase and export sales, crude import, domestic and international sales, and crude oil marketing.

(2) Manages the purchase and sale of oil products for domestic and export markets, coordinates with company operations on processing service agreements, fulfills the company’s social commitments regarding refined product shipments to various regions of Kazakhstan, and interacts with central and regional state authorities on refined product distribution and domestic sales.
(3) Oversees the planning, management, and coordination of crude oil delivery via our pipeline networks, transportation of crude and processed products from all company loading terminals for export and local markets in Kazakhstan, commodity transportation and forwarding services management, rolling stock management, and planning and coordination of crude supplies for refining.
(4) Manages and optimizes assets, monitors the technical condition, ensures timely repair and operation of oil product acceptance, storage, and sales facilities, and upgrades assets.
(5) Conducts market analysis, provides information assistance for all company divisions, and performs marketing research on existing and new goods and market directions.

The company monitors the economic performance of oil monetization channels to increase the proportion of high-margin channels in the overall sales structure. In 2020, the company aimed to supply approximately 1.2 million tons of oil to its own Russian operations, a 15% increase over 2019 (based on refinery deliveries from October 2019). The 2021 acquisition significantly contributed to the increase in supply volumes. In 2020, the company supplied 1.1 million tons of its own oil to plants where it has a participation proportion, representing a 3% increase over the previous year. 

Oil shipments to neighboring and distant nations were expected to exceed 2.8 million tons in 2020. Among the oil export channels, the eastern route, specifically the pipeline supply to China, is the most economically advantageous for the company. In 2021, supplies to the East totaled 7.7 million tons, a 10.7% increase over the previous year. Additionally, the company exported 65.7 million tons of oil to countries in Northern, Central, and Eastern Europe, the Mediterranean, and other distant regions. The Commonwealth of Independent States (CIS) received 8 million tons of exports.