Baku, Azerbaijan, Dec. 21
By Elena Kosolapova – Trend:
Kazakh KazMunaiGas Exploration Production company expects oil production from its subsidiaries OzenMunaiGas (OMG) and EmbaMunaiGas (EMG) to increase by 2 percent to 8.7 million tons (175 thousand barrels of oil per day, or kbopd) in 2017 compared to 2016, the company said Dec. 21.
Oil production at OMG is expected to reach 5.8 million tons (117 kbopd) and at EMG - 2.8 million tons (57 kbpod) in 2017.
Increase in oil production will come from the comprehensive measures with existing well stock and additional geological and technical measures, the company said.
Meanwhile KMG EP’s share in production of Kazgermunai (KGM), CCEL and PetroKazakhstan Inc. (PKI) joint ventures is expected to decrease by 7 percent to 3.5 million tons (72 kbopd) in 2017 compared to the expected production in 2016 mainly due to an anticipated natural decline of production at the PKI and KGM.
KMG EP expects that by 2021 the annual volume of oil production at OMG and EMG will increase to 6.2 million tons and 3.1 million tons, respectively, which is 10 percent higher than expected production in 2016 due to the comprehensive measures with existing well stock and additional geological and technical measures. Meanwhile, production of KGM, CCEL and PKI is expected to decrease to 3 million tons by 2021, which is 20 percent less compared to the expected production in 2016, mainly due to a natural decline of production at PKI by 56 percent.
Overall, the total combined production of KMG EP, including its stakes in joint ventures, in 2021 is expected to be 1 percent higher than expected production in 2016.
KMG EP is among the top three Kazakh oil producers. The overall production in 2015 was 12.4 million tons of oil, including the company’s shares in joint ventures.
Follow the author on Twitter: @E_Kosolapova