Kazakh KMG oil production up 2% in 2013

January 27, 2014

KazMunaiGas Exploration Production has announced its full year operating results for 2013 and dividends received from joint ventures and associate in 2013.

•    Overall, KMG EP, including the Company’s stakes in Kazgermunai (KGM), CCEL (CCEL) and PetroKazakhstan Inc. (PKI), produced 12,387 thousand tonnes of crude oil (251kbopd), a 2% increase year on year, which is in line with expectations;

•    2014 production at Ozenmunaigas JSC (OMG) and Embamunaigas JSC (EMG) is expected to be 5,350 thousand tonnes (108kbopd) and 2,820 thousand tonnes (57kbopd), respectively. The Company’s share of 2014 production at KGM, CCEL and PKI is estimated at 4,093 thousand tonnes (84kbopd);

•    The construction of the second gas utilization unit at EMG was completed. Also two production bases for KMG EP’s servicing company were launched;

•    In 2013, KMG EP received US$27m as priority payment from CCEL, US$219m from PKI and US$200m from KGM in dividends.

KMG EP, including the Company’s stakes in Kazgermunai (KGM), CCEL (CCEL) and PetroKazakhstan Inc. (PKI), produced 12,387 thousand tonnes of crude oil (251kbopd), which is 196 thousand tonnes or 2% more than in 2012, in line with expectations.

As previously announced, 2014 production at OMG and EMG is expected to be 5,350 thousand tonnes (108kbopd) and 2,820 thousand tonnes (57kbopd), respectively. The Company’s share of 2014 production at KGM, CCEL and PKI is estimated at 4,093 thousand tonnes (84kbopd), which is 6% lower compared with 2013, mainly due to the natural decline of production at KGM and PKI.

In December 2013, KMG EP received US$10m as a priority payment from CCEL. In total, KMG EP received US$27m in priority payments from CCEL during 2013.

In accordance with the resolution by PKI shareholders as of December 2013, PKI distributed a dividend of US$300m, of which KMG EP’s share in accordance with its ownership interest amounted to US$99m. In total, KMG EP received US$219m in dividends (after tax) from PKI during 2013.

As announced, KMG EP received US$200m in dividends from KGM in 2013.

Source: KMG Press Office, 2014