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Kazakh KMG EP decreases oil production in 2016

Oil&Gas Materials 27 January 2017 16:19 (UTC +04:00)

Baku, Azerbaijan, Jan. 27
By Elena Kosolapova – Trend:
Kazakh KazMunaiGas Exploration Production company (KMG EP) produced 12.15 million tons of oil in 2016, which is 2 percent less than in 2015, the company said Jan. 27.
This volume includes the company’s shares in joint ventures.

KMG EP’s subsidiary Ozenmunaigas (OMG) produced almost 5.56 million tons of oil in 2016 (1 percent increase compared to 2015). KMG EP’s subsidiary Embamunaigas (EMG) produced 2.83 million tons (0.3 percent increase compared to 2015).

KMG EP’s share in production from Kazgermunai (KGM), Karazhanbasmun (CCEL) and PetroKazakhstan Inc. (PKI) amounted to 3.77 million tons of oil, which is 6 percent less than in 2015, mainly due to a natural decline in production of oil from PKI assets.

In 2016, the company’s combined sales from OMG and EMG was 8.4 million tons. As much as 4.95 million tons of this volume or 59 percent of the total oil sales volume was exported, and 3.46 million tons or 41 percent of oil sold at the domestic market.

In 2015 OMG and EMG sold 33 percent of its oil at the domestic market. It is expected that the share of domestic supplies of these companies in 2017 will be 2.9 million tons of oil or around 33 percent of the total production.
Moreover OMG and EMG sold 4,000 tons of oil products at the domestic market in 2016.
KMG EP’s share in the sales from CCEL, KGM, and PKI was 3.68 million tons of oil in 2016, including 1.83 tons supplied to foreign markets, and 1.84 million tons sold at the domestic market.

KMG EP’s export sales, including its shares in joint ventures increased from 52 percent of total sales in 2015 to 56 percent in 2016. Sales in the domestic market increased from 40 percent to 44 percent. Oil supplies to Russia within the intergovernmental agreement decreased from 8 percent in 2015 to zero in 2016.
KMG EP is among the top three Kazakh oil producers based on the 2016 results.

Follow the author on Twitter: @E_Kosolapova

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