KazMunayGas and JANAF establish key partnership with MoU signing

Kazakh KazMunayGas and Croatian JANAF have solidified their strategic collaboration by signing a Memorandum of Understanding (MoU), marking a significant step towards enhanced cooperation in the energy sector. This partnership aims to leverage mutual strengths and drive advancements in the oil and gas industry.

Kazakhstan’s national oil and gas company, KazMunayGas (KMG), and Croatian firm Jadranski Naftovod d.d. (JANAF) have solidified their collaborative efforts by signing a memorandum of understanding (MoU), a pivotal step in enhancing their strategic partnership in the energy sector. The MoU, inked by Deputy Chairman of KMG, Bulat Zakirov, and JANAF’s Chairman of the Board, Stepan Adanić, focuses on jointly exploring business cooperation opportunities related to the transportation and storage of oil and petroleum products.

Zakirov emphasized that the memorandum serves as the foundation for future mutually beneficial collaborations in the energy sector with Croatia.

Adanić highlighted the significance of the MoU in fostering cooperation, specifically in the transportation of Kazakh oil to European markets. As logistics connections and energy supply routes undergo reformatting, the Adria oil pipeline system emerges as a key player in transporting oil and petroleum products to South-Eastern European countries. This system, comprising a crude oil pipeline in Croatia, Serbia, and Hungary with branch lines extending to Slovenia and Bosnia and Herzegovina, plays a pivotal role in facilitating the movement of oil.

Over the first 11 months of 2023, the Adria oil pipeline system transported more than $303 million worth of Kazakh oil, underscoring its crucial role in facilitating economic exchanges between Kazakhstan and European markets. This achievement reflects the successful utilization of the existing infrastructure and highlights the potential for further growth and collaboration between the two nations.

The joint study outlined in the MoU signifies a commitment to exploring new avenues for cooperation, particularly in optimizing the transportation and storage processes for oil and petroleum products. Both KMG and JANAF aim to leverage their collective expertise and resources to enhance the efficiency and sustainability of these crucial aspects of the energy supply chain.

As the global energy landscape evolves, partnerships like this one become instrumental in addressing challenges and ensuring the reliable and sustainable supply of energy resources. The mutual interest in continuously improving sustainable management practices demonstrates a shared commitment to environmental responsibility and aligns with broader global efforts to transition towards cleaner and more sustainable energy solutions.

The MoU between KazMunayGas and JANAF is a significant step forward in their collaborative efforts, opening up new avenues for cooperation in the transportation and storage of oil and petroleum products. The commitment to sustainable practices, as well as the exchange of experiences, positions both companies as key players in addressing evolving global energy challenges and contributing to a more resilient and environmentally responsible energy sector.