KMG EP increase oil production by 15 percent
Kazakhstan, Astana, Nov. 12 / Trend A.Maratov /
JSC KazMunaiGas Exploration Production (KMG EP) increased oil production in the first nine months of this year by 15 percent, the company reported on Friday.
"The consolidated production in the nine months of 2010 is 15% higher than in the same period of 2009 mainly due to the acquisition of a 33% stake in PetroKazakhstan Ink. in December 2009 and increased production of other operating assets, except Uzenmunaigas production unit," the company reported.
KMG EP made a profit after tax of 156.8bn Tenge ($1,064m) and earned 2,155 Tenge per share ($2.44 per GDR) compared with 180.6bn Tenge ($1,231m) and 2,467 Tenge per share ($2.8 per GDR) in the corresponding period in 2009.
"We are happy with our results in the first nine months of 2010. KMG EP made a considerable profit in a higher oil price environment, somewhat offset by the increase in costs and the impact of the recently introduced crude oil export duty. The contribution to the results from our joint ventures is further evidence that the acquisitions made since the IPO have been well considered. We will continue to identify appropriate value enhancing opportunities with potential for significant further development," CEO of KMG EP Kenzhebek Ibrashev said.
Average Brent price in the nine months of 2010 increased by 34% compared with the same period of 2009, from $57.32 per barrel to $76.73 per barrel.
KMG EP is among 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 total volume of proved and probable reserves, as at the end of 2009 was 234mt (1.7bn bbl), excluding the relevant proportion of reserves at Kazgermunai, CCEL and PKI; including the share of reserves from Kazgermunai, CCEL and PKI the 2P reserves were about 2.2 bn barrels. The Company's shares are listed on the 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. In December 2009, the International rating agency Standard & Poor's (S&P) assigned the Company a "GAMMA-6" rate and confirmed KMG EP's "BB+" corporate credit rating in July 2010.