Kazakhstan, Astana, Dec. 10 / Trend K. Konyrova /
The Board of Directors of JSC KazMunaiGas Exploration Production ("KMG EP", "The Company") has approved the 2010 budget. The budget assumes average Brent oil price for the year of $50 per barrel, the company reported.
The Company's total capital expenditure at Uzenmunaigas and Embamunaigas for 2010 is expected to be 91.9bn Tenge ($612.4m).
This increase in capital expenditure compared to 2009 (approximately 46.6bn Tenge or US$310.7m) is due to the increase of expenditure on production and exploration drilling, and on the gas utilization project at the Prorva group of fields developed by the Company's production unit Embamunaigas.
Production for 2010 at the Company's core assets (Uzenmunaigas and Embamunaigas) is expected to be 9,200 thousand tonnes (185.5kbopd), 2.2 percent higher than in 2009 (181.5kbopd).
The approved budget for 2010 allows KMG EP to maintain its operations at a sustainable level and in line with the Company's strategy.
KMG EP is among the top three Kazakh oil and gas producers. The overall production in 2008 was 11.95mmt (an average of 240kbopd) of crude oil, including the Company's share in Kazgermunai and CCEL. The total volume of proved and probable reserves, as at the end of 2008, is 241mmt (1.8bn bbl), excluding the relevant proportion of reserves at Kazgermunai and CCEL; including the share of reserves from Kazgermunai and CCEL the 2P reserves are over 2.1 bn barrels.
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