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Kazakh KMG EP decreases oil production

Oil&Gas Materials 25 April 2017 20:57 (UTC +04:00)

Baku, Azerbaijan, Apr. 25
By Elena Kosolapova – Trend:

Kazakh KazMunaiGas Exploration Production company (KMG EP) produced 2.904 million tons of oil in the first quarter of 2017, which is 5 percent less than in the same period of 2016, the company said in a message Apr. 25.

This volume includes the company’s shares in joint ventures.

“The lower levels of production were largely due to natural decline in production of oil at PKI [PetroKazakhstan Inc. joint venture] and fewer wells drilled at Ozenmunaigas JSC (OMG, KMG EP’s subsidiary), which is in line with the current company’s plan,” the message said.

In order to achieve the consolidated oil production plan of 12.2 million tons, which is higher than the actual production in 2016, additional geological and technical measures at existing wells are provided for at OMG, according to the message.

OMG produced 1.335 million tons of oil in the first quarter of 2017 (4 percent less compared to the first quarter of 2016), mainly due to a lower daily production rate as at the beginning of the year, fewer wells drilled and less geological and technical measures performed.

KMG EP’s subsidiary Embamunaigas (EMG) produced 691,000 tons (2 percent less compared to the first quarter of 2016).

KMG EP’s share in production from Kazgermunai (KGM), Karazhanbasmunai (CCEL) and PetroKazakhstan Inc. (PKI) amounted to 878,000 tons of oil in the first quarter of 2017, which is 8 percent less than in the first quarter of 2016, mainly due to a natural decline in production of oil at PKI.

In the first quarter of 2017, the company’s combined sales from OMG and EMG was 1.939 million tons of oil. As much as 1.284 million tons of this volume or 66 percent of the total oil sales volume was exported, and 655,000 tons of oil sold at the domestic market.

During the first quarter of 2017 sales of oil products were 641,000 tons as per the oil processing scheme.

KMG EP’s share in the sales from CCEL, KGM, and PKI was 871,000 tons of oil in the first quarter of 2017, including 375,000 tons supplied to the export markets, or 43 percent of the total sales volume. The domestic sales volume was 496,000 tons of oil.

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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