The management of KazakhstanCaspiShelf (KCS) intends to reduce its authorised capital by 10%, (Interfax). The company will hold a general meeting of shareholders on July 24 to address this issue among others. The capital reduction will be done by buying out from holders and cancellation of 10% of preferred shares. JSC RCS was established in 1993 under a state oil and gas development programme. The first stage of the programme included oil exploration in the Kazakhstani Caspian shelf sector. The works were completed in 1997. Possible oil reserves of the Kazakhstani Caspian shelf have been estimated at 6-12bn tonnes. Currently, the KCS owns a 1/7 share in the international consortium OKIOC. Each of the other participants (Agip, British Gas, Mobil, Shell, Total, and British Petroleum-Statoil) has the same share. 90% of the state stake in the KCS belongs to the national oil company KazakhOil.

The Panorama newspaper reported that on July 7 Halyk Savings Bank of Kazakhstan (HSBK) held a general meeting of shareholders which approved the increase of bank authorised capital through the placement of the third issue of shares to the amount of KZT1,311,900,000 (more than US $17m). The government intends to retain a 82.4% stake in the bank through capitalisation of bank profit before January 1, 1998. In its press release the HSBK reported a profit of KZT1,010,700,000 (over US $13m) from 1986 to 1997. The meeting also approved the sale of part of the third issue—10% of the authorised capital worth KZT301,200,000 (over US $3.9m)—to national investors. To this end, a tender will be held with the major criterion of a maximum price per share.

JSC Khimprom has resumed operations after standing idle two years. The company is currently capable of a monthly production to the amount of US $3.5-4m (30% of its rated capacity). Kairat Shotbakov, the chairman of the creditor committee acting as a company investor, told Interfax that the committee had temporarily frozen company debts totalling KZT1.8bn (US $23.4m). According to Mr. Shotbakov, this will help the company "to repay debts and operate self-supported." The company also owes more than US $4.5m in taxes. Khimprom produces basic mineral fertilizers and is capable of producing over 13,000 tonnes of phosphoric aid and 10,000 tonnes of electrode mass. Mr. Shotbakov said the company had concluded contracts to supply yellow phosphorus to Russia—14,000 tonnes per month—and plans to "establish relations" with Uzbekistan and Kyrgyzstan.

The State Property and Privatisation Department has announced tender to sell a package of 90% of the shares in each of two chemical companies, Aminokisloty and Biopreparat, both based in the town of Stepnogorsk, Central Kazakhstan. The first company produces lysine nutrient compounds and enriches nutrient concentrates while the other company produces biological plant protection species, nutrient antibiotics, ferments and vitamins, and ethyl alcohol. The tender will be held on August 7, 1998. The winner will have the right to possess and use the collection of commercial microbe strains being used in production technology. The winner is supposed to pay not less than the value of companies fixed assets— US $0.5m for Aminokisloty and about US $2m for Biopreparat. Investment requirements are US S4.5m for the former and US $3.2m for the latter. (Reuters)