Kazakhstan's national oil and gas company KazMunayGas reported a net loss of KZT665.4bn (€2.1bn at the current exchange rate) in January-September 2015, according to the company’s financial statement published by the Kazakhstan Stock Exchange (KASE). In the same period of the previous year, the company’s net loss stood at KZT52.4bn. This means that the company's net losses skyrocketed by more than 10 times.

A decrease in revenue to KZT246bn from KZT356bn in the same period of the previous year is blamed on the sharp fall in the price of oil this year compared to 2014. At the same time, the company’s operating costs more than doubled to KZT789.4bn.

In 2014, the company’s net profit halved to KZT207.4bn because of the drop in the oil price. At the same time, oil production went down by 1% to 22.5mn tonnes. Similar reasons are behind bad results for this year.

KazMunayGas is presently looking for ways to decrease its indebtedness. The company is finalising the sale of half of its 16.81% stake in the Kashagan oil project to Samruk-Kazyna national wealth fund for $4.7bn. The payment is expected by the end of the year. KazMunayGas’s debts stood at $18bn as of end-2014.

KazMunayGas is the state’s agent in the oil and gas sector. The company owns 44 oilfields in the country and holds stakes in all large projects that are being realised in Kazakhstan (Tengiz, Kashagan and Karachaganak oil and gas fields).