Our view
As we noted earlier, the main volume of oil produced in Kazakhstan and pumped through the KTO system was produced on old fields. As the total oil production accelerates due to Tengiz and Kashagan, we expect that the share of oil transported by the KTO will gradually decrease from the current ~50% and by 2023 will be 44.2%. We are neutral with respect to KTO's annual operating performance and do not see any deviations from our expectations. We maintain our Buy recommendation on KTO shares with 12M TP1582/share.
