KazMunaiGas Exploration Production decreases oil production by 4% in first half of 2012
Kazakhstan, Astana, July 18 / Trend D.Mukhtarov /
JSC KazMunaiGas Exploration Production ("KMG EP") in the first six months of 2012 produced 6,057 thousand tonnes of oil (248,000 barrels per day), including the company's stakes in Kazgermunai (KGM), CCEL and PetroKazakhstan Inc. (PKI), which is 254 thousand tonnes or 4 percent less than in the same period of 2011, the company reported on Wednesday.
According to the estimates, JSC Uzenmunaigas (UMG) produced 2,467 thousand tonnes (100,000 barrels per day), which is 266 thousand tonnes less than in the first half of 2011. JSC Embamunaigas (EMG) produced 1,376 thousand tonnes (56,000 barrels per day), which is 7 thousand tonnes less than in the same period of 2011. The total volume of the oil produced at UMG and EMG is 3,843 thousand tonnes of oil (156,000 barrels per day), which is 274 thousand tonnes or 7 percent less than in the same period of 2011 and about 363 thousand tonnes below the plan.
The major reasons for low production levels at UMG were adverse weather conditions in first quarter, effect of wells idle time accumulated during labor action in 2011, as well as obsolete infrastructure and equipment, the report says.
Taking into account recent production trend and the results of the first half of the year, KazMunaiGas Exploration Production updated its annual production plan for UMG, initially set at 5,800 thousand tonnes.
According to the revised plan it is expected that UMG will produce 5,100 thousand tonnes in 2012 (103,000 barrels per day). The company expects that EMG will achieve initial plan of 2,815 thousand tonnes. Thus, it is expected that the total volume of the oil produced at UMG and EMG in 2012 will be 7,915 thousand tonnes (160,000 barrels per day) which is slightly higher than in 2011.
The reports says that the company's share in the production from KGM, CCEL and PKI for the first six months of 2012 amounted to 2,215 thousand tonnes of crude oil (92,000 barrels per day) which is 20 thousand tonnes or 1 percent more than in the same period of 2011.
In the first six months of 2012 the company's export and domestic sales from the UMG and EMG were 3,011 thousand tonnes (122,000 barrels per day) and 958 thousand tonnes (39,000 barrels per day) respectively.