The Kazakhstani Government has approved a new business plan for the national oil company KazakhOil whereby the company will receive a minimum of a 25% stake in all new oil development projects. In addition, the Government will transfer to KazakhOil 100% of its shares in the oil pipeline company KazTransOil. These decisions are in line with the medium-term development strategy for KazakhOil (up to the year 2003) that the government adopted on 3 November. The strategy promotes setting up a vertically integrated company. To this end, closer co-ordination of the two companies' businesses will be needed. The transfer of shares will not imply that KazakhOil will have priority rights in setting up tariffs or getting access to the pipeline. These will continue to be the responsibilities of the Antimonopoly Committee and the Ministry of Energy, Industry, and Trade, respectively.

On 15 November, KazakhOil's central office began its move to Kazakhstan's new capital, Astana. About 100 employees will arrive in Astana next week. The other employees are supposed to move next spring. (Reuters & Interfax)

The JSC Neftekhimbank has increased its authorised capital to KZT 1bn (USD 12m) from KZT 550m through its 6^th issue of shares which totalled KZT 450m. The issue was registered with the National Securities Commission on 6 November 1998. The shares, with a par value of KZT 1,000 (USD 12), are common and were issued in a non-material form. The bank has about 800 corporate clients (mostly medium and small-sized oil companies) and 17,000 individual clients. The bank's shares were added to Listing A on the Kazakhstan Stock Exchange in 1998. (Reuters)

***

Moody's Investors Service has assigned a B2 rating to Kazkommerts International B.V. Eurobonds which are guaranteed by Kazkommertsbank. The USD 100m notes were issued in May 1998, carry 11.25% interest, and are due in May 2001. Moody's confirmed its B2/Not Prime ratings for long and short-term foreign currency deposits and its E+ financial strength rating for Kazkommertsbank. (Reuters)