KazMunaiGas Sets Sights on Production Growth
KazMunaiGas Exploration Production ("KMG EP"), announced that in the full year ended December 31, 2009 it produced 11,497 thousand tonnes of crude oil (232 kbopd), which includes the Company's stakes in both JV Kazgermunai LLP ("Kazgermunai") and CCEL ("Karazhanbasmunai"). This is 458 thousand tonnes, or 3.8% less than in 2008.
KMG EP's production from its core assets (Uzenmunaigas and Embamunaigas) was 8,962 thousand tonnes of crude oil (181 kbopd), 508 thousand tonnes less than in 2008. The decline was due to KMG EP's planned reduction in drilling and production in 2009 in a lower oil price environment. Production was also adversely impacted by severe weather conditions in the beginning of the year and interruptions in power supply in the first and third quarters of 2009.
According to preliminary data, during 2009 the Company supplied 8,966 thousand tonnes of crude oil (181 kbopd), excluding the share in supply from Kazgermunai and Karazhanbasmunai. Of this amount, 6,946 thousand tonnes (140 kbopd) were exported.
The Company's share in the sales volumes from Kazgermunai and CCEL was 2,450 thousand tonnes of crude oil (49 kbopd) in 2009, including 2,054 thousand tonnes (41 kbopd) supplied to export markets.
Commenting on the operating results, Kenzhebek Ibrashev, the CEO of KMG EP, said, "Despite severe weather conditions and disrupted power supplies, the decrease in 2009 production was kept close to planned levels. In 2010 we plan to increase capital expenditure on our main assets and expand our resource base through further acquisitions in order to maintain output from the core fields and achieve overall growth in production."
From mid 2009 KMG EP has been increasing its capital expenditure and is planning to invest about 95bn Tenge (US$633m) in 2010 to primarily fund development and exploration drilling, as well as the implementation of the associated gas utilisation program. Production for 2010 at Uzenmunaigas and Embamunaigas is expected to be 9,200 thousand tonnes (186 kbopd).
In 2010 KMG EP is expected to add approximately 17% to its consolidated production, due to the impact of a 33% share in production from the PetroKazakhstan Inc. acquisition, which was finalized in December 2009.
- New UK Listing Rules Set to Attract State Companies Beyond Aramco (Jul 17)
- KMG Switches from Urals Supplies to Romanian Refineries as Prices Rise (Jul 11)
- S.Korea's KNOC In Talks With Kazakhstan To Drop Oil Field Project (Aug 05)