KazMunaiGas EP Increases Capex to Drill New Wells in 2015


ALMATY, Sept 28 (Reuters) - KazMunaiGas Exploration Production (KMG EP) plans to increase its capital expenditure this year to pay for the drilling of additional wells at its main oilfields, Kazakhstan's third-largest oil producer said on Monday.

Capital expenditure in 2015 will amount to 106 billion tenge ($511 million), 12 percent higher than the figure approved in May, the London-listed subsidiary of state oil and gas firm KazMunaiGas said.

The rise in capital expenditure takes into account the drilling of 57 new wells at Ozenmunaigas (OMG), KMG EP's largest producing unit.

"Finally, 274 wells are now planned to be drilled in 2015 at both OMG and EMG (Embamunaigas), in comparison to the 217 wells previously approved in May 2015," the company said.

OMG and EMG are both located in western Kazakhstan. OMG is forecast to produce 5.530 million tons this year, or 1 percent more than the planned volume approved in May, the company said.

EMG's output is seen unchanged at 2.8 million tons.

Together with KMG EP's shares in joint ventures, the company's output this year is expected to be around 12.32 million tons, roughly unchanged from the 2014 level.

The company said its 2015 budget assumed an average annual brent price of $51 per barrel and an average annual exchange rate of 208 tenge to the dollar.

(Reporting by Dmitry Solovyov, editing by Louise Heavens)


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