Kazakh KMG EP revises 2016 capital expenditure plan
Baku, Azerbaijan, Dec. 8
By Elena Kosolapova – Trend:
The Board of Directors of KazMunaiGas Exploration Production (KMG EP) approved a revision of the 2016 capital expenditure plan, the company reported Dec. 8.
As previously announced, the company started construction of a gas treatment unit (GTU) for the Prorva group of fields at Embamunaigas subsidiary in 2014. During construction of the GTU, the processing scheme was significantly revised, which resulted in an increased construction area, additional sub-facilities and larger equipment capacity, the company said.
Moreover, the cost of imported and purchased equipment increased due to the switch to a freely floating tenge since August 2015.
These factors resulted in an increase in overall project cost by 17.9 billion tenges.
Construction of the GTU will prevent gas flaring, complying with the Kazakh legislation, as well as achieve the planned volume of oil production. Commissioning of the GTU is expected by the middle of 2017.
The KMG EP Board of Directors also preliminarily agreed on the budget for 2017 and business plan for 2017-2021.
KMG EP is among the top three Kazakh oil producers. The overall production in 2015 was 12.4 million tons of oil, including the company’s shares in joint ventures.
(336.23 tenges = $1)
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