20 Oct 2010 14:26

EP KazMunaiGas boosts oil production by 15% in January-September

ALMATY. Oct 20 (Interfax) - JSC Exploration and Production KazMunaiGas (EP KMG) produced 9.946 thousand tonnes of crude oil (270kbopd) in January-September 2010 ((including the company's stakes in Kazgermunai (KGM), CCEL and PetroKazakhstan Inc. (PKI)), or a 15% increase compared to the same period last year.

In the reporting period, the company produced 6.555 thousand tonnes (177kbopd) of oil at Uzenmunaigas and Embamunaigas production facilities, which is 3% less compared to the same period last year, the company said. According to the report, the decline in production was mainly caused by the failure to perform well service operations and timely oilfield equipment repairs amid a strike by Uzenmunaigas workers over the period from March 4 through March 18.

Also during the period from June to September 2010 there was a number of emergency power cuts in the fields, caused by severe weather conditions, the company added. Given the circumstances, the Board of Directors decided to adjust the 2010 production plan for Uzenmunaigas field from 6.302 thousand tonnes to 6.001 thousand tonnes.

As a result, the company expects the annual volume of production at Uzenmunaigas and Embamunaigas production facilities to reach 8.781 thousand tonnes (177kbopd) in 2010. The company's share in the production volumes from KGM, CCEL and PKI in the reporting period amounted to 3,391 thousand tonnes of crude oil (93kbopd).

According to preliminary data, during the first nine months of 2010 the Company supplied 6.496 thousand tonnes of crude oil (175kbopd), excluding the share in supply from KGM, CCEL and PKI. Of this amount, 5.156 thousand tonnes (139kbopd) were exported. The company's share in the sales volumes from KGM, CCEL and PKI totalled 3.802 thousand tonnes of crude oil (105kbopd), including 2.682 thousand tonnes (74kbopd) supplied to export markets.

KMG EP is one of the top three Kazakh oil and gas producers. The overall production in 2009 was 11.5mmt (an average of 232kbopd) of crude oil, including the Company's share in Kazgermunai and CCEL.

The volume of proved and probable reserves (2P) of KMG EP as at the end of 2009 was 234mmt (1.7bn barrels); while including the share of reserves from associates and joint ventures, preliminary about 2.2 bn barrels.

The Company's ordinary and preferred shares are listed on Kazakhstan Stock Exchange and the GDRs are listed on The London Stock Exchange. The Company raised over US$2bn in its IPO in September 2006.