KMG EP reduces oil production in 2009
Kazakhstan, Astana, Jan. 26 / Trend K. Konyrova /
In 2009, JSC KazMunaiGas Exploration Production (KMG EP) produced 11,497 million tons of crude oil (232,000 bpd), which includes the Company's stakes in both JV Kazgermunai LLP ("Kazgermunai") and CCEL ("Karazhanbasmunai"). This is 458,000 tons, or 3.8 percent less than in 2008, the company reported.
KMG EP's production from its core assets (Uzenmunaigas and Embamunaigas) was 8,962 million tons of crude oil (181,000 bpd), or 508,000 tons 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 the preliminary data, in 2009 the company supplied 8,966 million tons of crude oil (181,000 bpd), excluding the share in supply from Kazgermunai and Karazhanbasmunai. About 6,946 million tons of this volume (140 bpd) was exported.
The company's share in the sales volumes from Kazgermunai and CCEL was 2,450 million tons of crude oil (49,000 bpd) in 2009, including 2,054 million tons (41 bpd) supplied to export markets.
The company reported that from mid 2009 it has been increasing its capital expenditure and is planning to invest about 95bn Tenge ($633m) in 2010 to primarily fund development and exploration drilling, as well as the implementation of the associated gas utilization program. Production for 2010 at Uzenmunaigas and Embamunaigas is expected to be 9 million tons (186,000 bpd).
Moreover, in 2010, the KMG EP is expected to add approximately 17 percent to its consolidated production, due to the impact of a 33 percent share in production from the PetroKazakhstan Inc. acquisition, which was finalized in December 2009.
The KMG EP is among the top three Kazakh oil and gas producers.
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