26 May 2010 15:36

KazMunaiGas EP boosts dividends 7%

ASTANA. May 26 (Interfax) - Shareholders in KazMunaiGas Exploration Production (KMG EP) accepted a dividend of 704 tenge per share on all shares for 2009 at their AGM on May 25, Zhanneta Bekezhanova, deputy CEO, told reporters.

This will be 22.9% of net profit for 2009, and 7.3% higher than the 656 tenge per share paid for 2008.

Net profit fell 13% last year to 209.7 billion tenge, and the total payout will be 48 billion tenge ($327 million).

The shareholders also elected Philip Dayer as an independent director of KMG EP. He also serves as a current director in Dana Petroleum plc, AVEVA Group plc, Cadogan Petroleum plc, Navigators Underwriting Agency Limited, IP Plus plc and Arden Partners plc.

KazMunaiGas EP is 57.95%-powned by KazMunaiGas, Kazakhstan's national oil and gas company. It is one of Kazakhstan's top three oil producers. Oil production fell 3.8% in 2009 to 11.497 million tonnes.

KMG EP plans to increase oil production by 25% through acquisitions in 2011. "If we successfully meet the targets by the end of 2010, we will be able to announce a 25% rise in production in 2011," said KMG EP General Director Kenzhebek Ibrashev told Wednesday's briefing.

"There are several projects the company has been focused on for a long time and currently they are close to completion," he said.

KMG EP is nearing the closure of the deals to acquire stakes in MangistauMunayGas, Kazakhoil Aktobe and Kazakhturkmunai from the parent company KazMunaiGas.

"If we complete all these acquisitions by the end of the year, as we plan, production will increase by 25%," Ibrashev said.

KMG EP is listed on Kazakhstan Stock Exchange and the GDRs are listed on London Stock Exchange. The company raised approximately $2 billion in its IPO in September 2006.