Astana, Kazakhstan, Dec.6
By Daniyar Mukhtarov - Trend:
Kazakh KazMunaiGas Exploration Production has approved the budget for 2014 and a business plan for 2014-2018, the company said on Dec.5.
The production at UzenMunaiGas (a subsidiary of KazMunaiGas Exploration Production) increased by five percent in the first eleven months of 2013 compared to the same period of 2012, according to the company.
"However, taking into account all the factors, the Board of Directors approved a new plan for production at UzenMunaiGas at the level of 5.35 million tons of oil (108,000 barrels per day) in 2014. The production plan at EmbaMunaiGas (second subsidiary of KazMunaiGas Exploration Production) was maintained at the same level of 2.8 million tons (57,000 barrels per day)," the company said.
The review of the production profile at UzenMunaiGas is mainly related to the low production level in the past three years, including 2011, when a dramatic decrease occurred in production due to labor conflicts, the company explained.
"The company expects that the total production volume in UzenMunaiGas and EmbaMunaiGas will increase by three percent by 2018 compared to the expected production volume in 2013 including increase by five percent (to 5.57 million tons) at UzenMunaiGas," the company said.
The share of KazMunaiGas Exploration Production in the oil production volume of Kazgermunai JV LLP, CCEL (Karazhanbasmunai JSC), PetroKazakhstan Inc. and Ural Oil and Gas LLP will amount to 4.1 million tons (84,000 barrels per day) in 2014 and will gradually decrease to 3.4 million tons (68,000 barrels per day) in 2018 due to the natural decrease of production at Kazgermunai and PetroKazakhstan Inc.
KazMunaiGas Exploration Production is among the top three oil producers in Kazakhstan. The company's production volume including shares in the following companies, JV Kazgermunai LLP, CCEL (Karazhanbasmunai JSC) and PetroKazakhstan Inc amounted to 12.2 million tons (247,000 barrels per day) in 2012. The volume of proven and probable reserves of KazMunaiGas Exploration Production in late 2012 amounted to 204 million tons (1.5 billion barrels) around 148 million tons of which (1.1 billion barrels) fell to UzenMunaiGas JSC and EmbaMunaiGas JSC.