TengizChevrOil (TCO), a joint venture between Chevron, KazakhOil, Mobil, and LUKArco, which is developing the Tengiz oil field in Western Kazakhstan, has revised its 1999 budget. The new budget cuts operating expenses to USD 200m from USD 224m and capital investment to USD 428m from USD 540m. To reduce its spending, the company has to give up drilling exploratory wells and slash environmental expenses. (Interfax)

Note: We apologise for a misprint in the article on Sokolovsko-Sarbaisky Mining and Concentrating Plant (SSMCP) in the previous issue of KWN. The correct figure for the plant's production in 1Q99 is 1.18 million tonnes of ore.

The Almaty-based Kazakhtelecom (Listing A on the KASE) has notified the KASE of the call for an extraordinary General Shareholders Meeting on 21 May 1999. The shareholders are supposed to replace some government appointed members of the Board of Directors and to make amendments to the company's Charter. They will also consider several of the company's transactions that need the approval of the shareholders. (IRBIS)

Kazakhstan's National Securities Commission (NSC) has granted Halyk Savings Bank of Kazakhstan (HSBK) and Neftebank the status of Public Company. According to the new Kazakhstani law "On Joint-Stock Companies", companies with this status must have assets of not less than KZT 143m as of 21 April and have at least 500 shareholders. Also, shares in such a company should be listed on a stock exchange. Both banks meet these requirements. As of 1 April, the HSBK had assets worth KZT 39,734,24,000 and 42,701 shareholders. As of the same date, Neftebank's respective figures were KZT 1,566,121,000 and 1,239. The chairman of the HSBK, Karim Masimov, told journalists that "The advantage [of the new status] is that a public company is more transparent for its investors, implying more opportunities to enhance confidence in a particular company." (Reuters)

Mr. Masimov said to Interfax that the HSBK and a bank syndicate, which includes American Express and Citibank, are planning to sign a syndicated loan agreement worth USD 10m at the end of this week. Last October the bank repaid a USD 40m syndicated loan provided under an agreement signed in December 1997. The new loan will be for 6 months and may be extended for another 6 months. (Interfax)

The coal producer Bogatyr Access Komir, based in the north of Kazakhstan, produced 5,955,200 tonnes of coal in 1Q99, down by 28% compared with the same period of 1998. The finance director of the company, Alexander Teploukhov, explained to Interfax that the reduction was due to a lack of solvent customers. The company supplies coal to Russia (60% of shipments) and to Kazakhstani customers, mainly in the north of the country (40% of shipments). As of the beginning of April, it had receivables totalling KZT 4bn (USD 35m). (Interfax)