Kazakh KMG EP has no plans to reduce expenditures on geological exploration
Baku, Azerbaijan, Feb. 25
By Elena Kosolapova - Trend:
Kazakhstan's KazMunaiGas Exploration Production oil producing company doesn't plan to reduce the expenditures on geological exploration in connection with the decrease in oil prices, the company told Trend.
"Currently, the company adheres to the approved plans for 2015 in which the volume of geological exploration work is envisaged at 2014 level," said the company.
At the same time, KMG EP said that adjustments could be made if the economic situation changes.
The world oil prices have dropped from almost $110 per barrel to below $50 in recent months.
Meanwhile, in the current market situation, the company has to revise its plans for modernization of production. For instance, some long-term projects have been postponed. Moreover, the company reduced the volume of capital investments by 115 billion Kazakh tenge (185.05 tenge=$1), or by 14 percent in 2015, compared to 2014.
"It is planned to reduce the expenditures by decreasing the volume of investments which doesn't affect the production level and by decreasing the expenditures on the infrastructure projects," said the company.
Regarding the use of new technologies, a new method for maintaining reservoir pressure - polymer flooding - has been tested at Nuraly field of Kazgermunai enterprise in the Kyzylorda province since June 2014. KMG EP has a 50-percent share in the Kazgermunai enterprise.
The same technology has been tested at Zaburunye field of EmbaMunaiGas since November 2014.
Moreover, work on choosing sites and possibility of using the technologies of polymer and cyclic flooding is underway at the fields of Ozenmunaigas JSC.
KMG EP launched the program for modernization of production in 2012. Production facilities, a shop for diagnostics and repair of underground equipment, a facility for the treatment and transportation of associated gas etc. have been constructed as part of this program.
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
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