The Tengizchevroil Phenomenon




�I personally am one of the few foreigners at TCO who left a high-paid job to come to Tengiz and I have never regretted my decision.� So says the General Manager of the Finance Department at JV Tengizchevroil, Steve McLennan.

�We are united by the idea of Tengiz, its difficulties and problems. Many Kazakhstanis working at TCO are already highly qualified and could find a job either in Almaty or in Astana with a higher salary, but yet they do not leave. �What we are seeing is just the beginning of Tengiz, but we have everything to do,� Mr. McLennan continues. I, for one, believe him, having seen his eyes shine when he talked about Tengiz.

Such a quote goes against the standard perception of foreigners being greedy, coming to Tengiz only make their millions and bleed all of Kazakhstan's natural resources dry.

The media is often both positive and overtly critical of the TCO venture, and this makes it harder for us to see the real truth. I have been to Tengiz myself and seen most of it with my own eyes., In a series of articles for THE GLOBE, and going on for several editions, called �Life in Tengiz�, I invite you to follow me through the most urgent problems facing TCO.

Reappearing deficit of tenge caused the exchange rate of the dollar to fall at KASE

ALMATY, March 20 (IRBIS)

Today the next morning trades in U.S. dollars, Deutsche marks and euros were held at Kazakhstan stock exchange (KASE) with TOD payment terms. 17 banks participated in the trades.

Today the trades in U.S. dollars opened at KZT141.75 per unit. Total of 105 deals were made. Weighted average dollar exchange rate equaled to KZT141.59 (-0.08) per unit. Volume of the session � $5.065 mln (-$7.445 mln). Exchange rate fluctuation during the trade �0.13%. The trades were closed at KZT141.56/58 per dollar.

After an active buying of dollars on Friday today the banks were not able to create an adequate demand for the American currency to their supply. Only two participants, each of them bought more than 1 mln U.S. dollars, were the exceptions from this circumstance. Supply, on the contrary, was large. Sale of more than 3 mln USD by three banks, as well as lesser volumes of other participants of the trades with existing volume of demand contributed to a gradual and constant decrease in the exchange rate of the dollar throughout the session.

By the results of the trades it can be said that remarkable activity of currency dealers on Friday was likely to be based on speculative moods rather than on a growth in real purchasing power of the banks. The last trades of previous week emptied correspondent accounts of the banks again, and the amount of money received after the repayment of SS was not enough to compensate for the deficit. Today quotations of interbank "overnight" tenge deposits are at much higher levels than they were at the beginning of last week � 10-11/16 APR. Therefore, some banks began to shorten their currency positions by supporting their short term liquidity.

One hour after closing of the morning session of KASE on interbank market of Kazakhstan dollar was quoted at KZT141.50/58 per unit. Two hours later � KZT141.50/56. In the day session of KASE with TOD payment terms at 12:30PM the dollar was at KZT141.52/61.

Deutsche mark, morning session, TOD: 3 deals, weighted average � 70.57 (+0.76) tenge per unit, volume � DEM45 (+10) th. Closing quotations � KZT70.00/57 for mark.

Euro, morning session, TOD: no deals. Closing quotations were absent.


British Airways announces today its summer schedule of flights between Almaty and London Gatwick, which begins on March 26th.

The flights will leave Almaty every Wednesday and Saturday at 6.30 a.m. and will arrive at 8.25 a.m. on the same day.

The return flights will leave London Gatwick on Tuesdays, departing at 10.45 a.m. and arriving at 11.45 p.m. the same day, and on Fridays, departing at 2.15 p.m. and arriving at 3.15 a.m. the next day.

Mr. John Glosto, British Airways Manager, Kazakhstan, said, �We are delighted that these flights allow passengers to connect with flights the same day to most worldwide British Airways and Oneworld destinations, enabling them to have breakfast in Almaty and dinner in, for example, New York.�

The route is covered by Boeing 767 aircraft which are equipped for the longhaul configuration of 181 passengers, with eight in First, 36 in Club World, and 137 in World Traveller.

First features private cabins with electronically controlled seats which convert at the touch of a button into beds, ensuring that passengers sleep better than they ever have in the air. A la carte dining, with passengers able to choose anything from a snack to a five-course meal at any time during the flight, complements this, together with a personal video selection from over fifty titles.

Club World features �cradle seats� for refined comfort, with a �raid the larder� facility available for those who want to snack during the flight outside of meal service times.

World Traveller is British Airways' newest improved service, with children's catering, entertainment for youngsters, a more elaborate menu, and video films for general cabin showing.

Moving part of the British Airways services to Gatwick Airport from Heathrow has proved a great success and Gatwick Airport, the UK's second biggest airport, set in the heart of beautiful countryside, now serves more international destinations than Heathrow.

Gatwick Airport is just thirty minutes from the centre of London for travellers who use the Gatwick Express, a dedicated train which runs from within the airport itself to Victoria Station, in the heart of the West End of the British capital. Passengers returning to Almaty and travelling from Victoria to Gatwick Airport by the Gatwick Express are able to complete their check in formalities at the railway station, saving them valuable time for last minute duty free shopping or time to relax in the airport lounges.

In the space of ten years, British Airways has become Gatwick's biggest operator, using the airport to serve almost half of its scheduled passengers, and it is growing its Gatwick operation faster than anywhere else in the world, with the number of departures now standing at over 1,200 per week.

Mr. Glosto said, �Flying into Gatwick means getting immediately to the heart of our operation, with a myriad of connections from there or from Heathrow, which is just a short connecting ride away. I'm sure the new flight times will prove very popular, and the standard of service for passengers will feature the best that British Airways has on offer.�  ENDS

International and national legislation


ALMATY, March 20

(Specially for THE GLOBE)

 On February 29, 2000 the Republic of Kazakhstan ratified the Agreement on medical aid rendered to citizens of CIS countries. Recently the problem of health protection, urgent for Kazakhstan, is often the subject of attention of executive and representative authorities. For example, on February 29, 2000 the Governmental Decree (or a �GD�) approved: a) the Agreement for rendering medical aid to citizens of CIS countries; b) the Protocol of a mechanism to realise this Agreement, in the part concerning the rendering medical services; c) rules of sending country's citizens to undergo medical treatment abroad.

On February 28, 2000 a GD �On activities of companies exploiting manganese deposits� was issued.

In the beginning of March, the Kazakh Government issued a number of decrees for the regulation of law on international and national finances. In particular, on March 1 2000 the following decrees were issued: a) a GD for realisation of the Program �Development of the financial sector and the sector of enterprises�, which is being realised using the loan allotted by the World Bank of Reconstruction and Development; b) a GD �Some issues of the Ministry of Finance of the Republic of Kazakhstan�; c) a GD concerning measures to be taken to repay due accounts;

On March 2 2000, a GD �Issues of the National State Enterprises �National Bread Expertise� and �Kazsemexpertise�� was issued.

On March 2 2000, the GD �Some issues of the Ministry of Natural Resources and Preservation of the Environment of the Republic of Kazakhstan and the Committee on Water Resources, the Ministry of Water Resources and Preservation of the Environment of the Republic of Kazakhstan� was issued.

On March 2 2000, the GD on establishment of state institutions of the Ministry of Culture, Information and Social Accord was issued.

On March 6 2000 �Rules of granting privileges and preferences while concluding contracts with investors investing in priority sectors of the economy� were approved by the Presidential Decree.

Bills, prognoses, perspectives:

The Government of Kazakhstan has drawn up a bill for changes and supplementation to the Criminal- executive Code of the Republic of Kazakhstan.

According to the plan of events to realise the program of attracting direct investments (approved by the GD dated 01.07.99) in the second quarter 2000, territories of the Republic of Kazakhstan, where investment activities with foreign participation will be either restrained or forbidden in the interests of national security, and branches and industries where activities of enterprises with foreign participation will be either restrained or forbidden are supposed to be calculated and determined legally.

For further information on any legal issues and qualified law services, please contact the Almaty office of the law firm LEX ANALITIC, situated at the address: office 534, 15, Republican Square. Tel./fax: 63-17-11, tel.: 63-72-26. E-mail: [email protected]

Dmitry Bratus, Managing partner �Director LEX ANALITIC

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