Kazakhstan’s KazMunayGas talks production expenses

Oil&Gas Materials 25 November 2021 14:42 (UTC +04:00)
Kazakhstan’s KazMunayGas talks production expenses

BAKU, Azerbaijan, November 25

By Nargiz Sadikhova - Trend:

Production expenses of Kazakhstan’s KazMunayGas (KMG) National Company decreased slightly by 0.2 percent year-on-year to 544 billion tenge ($1.2 billion) due to the reduction of short-term lease costs, Trend reports citing the company.

Transportation and distribution costs decreased by 2.8 percent year-on-year to 317 billion tenge ($745 million).

General and administrative expenses decreased by 4.6 percent year-on-year to 103 billion tenge ($244 million), reflecting the reversal of impairment of VAT receivable, decline in expenses for consulting services.

Taxes other than income tax for the nine months of 2021 increased by 52.9 percent year-on-year to 312 billion tenge ($734 million) mainly due to higher average oil prices.

In the nine months of 2021, finance costs, including interest expense on lease liabilities, were at 205 billion tenge ($482 million), up by 1.5 percent year-on-year due to higher expenses on lease agreements, reflecting the new lease agreement for the Saryarka gas pipeline for 2021, and long-term office lease agreements and archival premises at KTG.

In the nine months of 2021, capital expenditures (on an accrual basis, segment reporting) amounted to 272 billion tenge ($639 million), down by 15.5 percent from 322 billion tenge ($788 million) in the nine months of 2020.

Capital expenditures on a cash basis amounted to 269 billion tenge ($634 million) with a decrease of 8.2 percent year-on-year.

Capital expenditures decreased at KMGI due to scheduled overhaul in 2020, at KTG due to the completion of large investment projects in the reporting period of 2020.

Cost of purchased oil, gas, petroleum products and other materials increased by 65.6 percent year-on-year to 2.6 trillion tenge ($6.3 billion) in the reporting period due to higher average price and volumes of oil purchases and weakening of the average exchange rate of tenge vs. the US dollar.

This was partially offset by a decrease in the cost of purchased gas for resale.


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