Kazakh KMG EP to optimize its expenditures

Baku, Azerbaijan, Feb. 24

By Elena Kosolapova - Trend:

Kazakhstan's KazMunaiGas Exploration Production (KMG EP) oil producing company is working on optimizing its expenditures due to the ongoing decrease in oil prices, the company told Trend.

"Increasing the effectiveness of production will remain the company's priority," KMG EP said.

The company said it has a complex attitude, taking into account all factors for ensuring the profitability of production.

Meanwhile, KMG EP doesn't plan to reduce social expenditures.

"Social payments and the amount of the fixed element of wages for workers of the company's enterprises were maintained at the same level in the budget for 2015 approved by the KMG EP board of directors," the company said.

"All obligations of the company under the collective agreements are fulfilled: medical insurance for employees and their families, children's recreation in health camps, sanatorium-and-spa treatment."

World oil prices have fallen from almost $110 per barrel to below $50 in recent months.
Earlier, the Deputy Minister of Energy of Kazakhstan Uzakbai Karabalin said the average cost price of oil production in the country is about $50 per barrel. Thus, with the current oil prices, production at a number of fields in Kazakhstan can be unprofitable due to high cost price.

The portfolio of KMG EP includes many oil fields where the cost price of production in quite high.

Nevertheless, despite the decrease in oil prices, KMG EP increased its income to $24.996 billion Kazakh tenge (185.05 tenge=$1) in the first nine months of 2014, compared to 93.161 billion tenge in the same period of 2013. The results of the company's operating activities as of 2014 haven't been published yet.

Earlier, the State Revenue Committee of the Ministry of Finance of Kazakhstan told Trend that the owners of low-profit oil fields in Kazakhstan are entitled to pay lower taxes on mining of minerals.

"In the case of unfavorable market conditions, the subsoil user has the right to attribute the fields to the categories of low-profit, highly-viscous, watered, marginal and depleted fields in order to get a lower mining tax rate on the field, group of fields or a part of the field," the committee said.

KMG EP is among the top three oil producers in Kazakhstan as of 2014. The volume of consolidated proven and probable reserve of the KMG EP, given the shares in joint ventures, amounted to 200 million metric tons (1.5 billion barrels) in late 2013. Some 148.8 million metric tons (1.1 billion barrels) of this volume accounted for Ozenmunaigas JSC, Embamunaigas JSC and Ural Oil and Gas LLP.( Rozhkovsky field, Fedorov block).

Edited by CN

---

Follow the author on Twitter: @E_Kosolapova

Subscribe to Trend in Google News! Subscribe
Mandatory vaccination issue to be solved in November, NCDC Head says
Mandatory vaccination issue to be solved in November, NCDC Head says
No mandatory vaccination in Georgia, PM vows
No mandatory vaccination in Georgia, PM vows
Georgia reports 3,436 coronavirus cases, 4,483 recoveries, 43 deaths
Georgia reports 3,436 coronavirus cases, 4,483 recoveries, 43 deaths
Loading Bars
Latest
Iran’s RCS receives 30th batch of COVID-19 vaccine
Mandatory vaccination issue to be solved in November, NCDC Head says
Some 16.03 million voters cast their votes in the presidential elections in Uzbekistan
Tug fights container fire on cargo ship off British Columbia
Tokayev arrives in Ashgabat for state visit
Voting in presidential elections in Uzbekistan ends
Growth of Uzbekistan’s real GDP makes almost 7% over 9 months
No mandatory vaccination in Georgia, PM vows
Uz-Kor Gas Chemical opens tender to attract services for int'l goods transport
Azerbaijan shares data on number of vaccinated citizens
Azerbaijan confirms 2,036 more COVID-19 cases, 1,045 recoveries
Azerbaijan's executive power in Aghdam opens tender for road overhaul
Inflation rate in Iran increases
Renewable energy dev't envisioned in Azerbaijan's national priorities - minister (PHOTOS/VIDEO)
UK says substantial differences remain with EU over Northern Ireland trade
Israel, UAE sign 'green corridor' agreement for vaccinated passengers - Israeli consulate in Dubai
Turkmenistan to connect grids of its Akhal, Balkan regions with new high-voltage line
Iran reveals COVID-19 data for October 24
Relations between Iran and Azerbaijan to continue based on mutual respect - Iranian FM
Kazakhstan boosts revenues from transporting cargo by air
Azerbaijan sees rise in total assets of local banks in September 2021
Georgia reports 3,436 coronavirus cases, 4,483 recoveries, 43 deaths
Azerbaijani MoD publishes video on events that took place last year this week (VIDEO)
Uzbekistan's CEC talks voters turnout as of 11.00
Total value of mortgage loans issued by Azerbaijani banks up in 9M2021
Prices of potatoes change in Uzbekistan
First VP Mehriban Aliyeva shares photo from visit to Zangilan with President Ilham Aliyev (PHOTO)
Daily COVID-19 case count at 1,677 in Kazakhstan
96 new positive cases of coronavirus detected in Kyrgyzstan
Azerbaijani banks increase issuance of consumer loans
Presidential elections kick off in Uzbekistan
Cargo ship on fire, spewing toxic gas off Canada’s Pacific coast: Officials
Tesla hikes price of Model X, Model S variants by $5,000
IRICA shares data on import of COVID-19 vaccine to Iran
Japan keen to invest in restoration of Azerbaijan's liberated lands
1,677 more COVID-19 cases reported in Kazakhstan
1 dead, 7 injured in shooting at off-campus party near Georgia university
Tesla posts a $1.62 billion profit in Q3 despite difficult car market
198 illegal migrants rescued off Libyan coast
10 envoys to be declared persona non grata: Erdogan
UN's Guterres welcomes Saudi Arabia's climate initiatives in call with King Salman
Presidential elections to be held in Uzbekistan
UK says substantial differences remain with EU over N.Ireland trade
New migrant caravan in Mexico pushes past blockade to head north
Aramco aims for net zero emissions from operations by 2050, CEO says
U.S. administers nearly 413 mln doses of COVID-19 vaccines
Chronicles of Victory: Azerbaijani president gives interview to Le Figaro newspaper on October 24, 2020 (PHOTO/VIDEO)
Chronicles of Victory: October 24, 2020
Buy/sell operations at Iran Mercantile Exchange growing
Iran unveils details of its trade turnover via Astara customs
Putin invites Israeli prime minister to visit St. Petersburg
Iran's Energy Exchange announces products to be on sale on October 24
Turkmenistan launches production of new types of paving slabs
Azerbaijani banks ramp up business lending since early 2021
Georgia and Ukraine talk cooperation within European integration
Iran reveals COVID-19 data for October 23
UK records another 44,985 new coronavirus cases
Tactical-Special Exercises of Azerbaijani Special Forces end (VIDEO)
First Vice-President Mehriban Aliyeva shared photos from Aghali village of Zangilan district on her official Instagram page (PHOTO)
Azerbaijani, Iranian FMs talk recent relations developments
Members of Nizami Ganjavi International Center join call towards cop26
Arayik Harutyunyan's visit to Russia is solely private - embassy of Azerbaijan
NATO not ready for equal dialogue with Moscow - Russian defence chief
Saudi-led coalition says destroys Houthi vessels, bomb-laden boats site
Kazakhstan updates forecast for completion of grain harvesting
IRENEX shares data on sales of Sepahan Oil Company in energy exchange
EIB to help reduce COVID-19 effects on Georgian SMEs
Moscow comments on reports about holding Russia-Armenia-Azerbaijan summit on Nov.2021
Azerbaijan shares data on number of vaccinated citizens
Azerbaijan confirms 2,315 more COVID-19 cases, 981 recoveries
First Vice-President Mehriban Aliyeva shared footage from Zangilan visit on her Instagram page (VIDEO)
Turkmenistan to participate in EXPO-2025
Georgia and Ukraine sign protocol on economic cooperation
Weekly review of key events in Azerbaijan's ICT sector
Azerbaijan's liberated lands to contribute to expansion of TRACECA corridor - minister
Weekly review of main events in Azerbaijan's transport sector
Saudi Arabia targets net zero emissions by 2060
Russia registers an all-time high of 37,678 coronavirus cases in past day
Uzbekistan eyes foreign technology for better local polymer production
Turkmen delegation to pay working visit to Iran
Azerbaijan records growth in loan portfolio of local banks in 9M2021
Turkmenistan’s Turkmenbashi refinery eyes producing hydrogen
Azerbaijan, Singapore to co-op in construction of geostationary satellites
IRICA shares data on Iran's trade turnover with SCO member states
Iran sees increase in exports of non-oil products from Hormozgan Province
Weekly review of Azerbaijani precious metals market
Kazakhstan unveils trade indicators with its TOP-3 EU partners
Turkmenistan approves new procedure for allocating investments from Stabilization Fund
Azerbaijani MoD observes exercises in liberated Lachin district (VIDEO)
Russian Health Ministry greenlights joint COVID-19 and flu vaccination
Central Bank discloses volume of loans issued to Azerbaijan's districts
Georgia records surge in tourist visits from Uzbekistan
Tourist inflow from Kazakhstan to Georgia soars
Iran boosts exports through customs of Zanjan Province
Azerbaijan notes decrease in banking sector' profit
Azerbaijan sees rise in mortgage lending
Iranian currency rates for October 23
Weekly review of Azerbaijani currency market
Georgia releases data on COVID-19 cases for October 23
New customs post in Azerbaijan to speed up cargo movement along North-South corridor (PHOTO)
All news