26 Jan 2010 07:00
PRESS-RELEASE
JSC KazMunaiGas Exploration Production announces operating results for 2009
Astana, 26 January 2010. JSC KazMunaiGas Exploration Production ("KMG EP" or "the Company"), announced today that in the full year ended 31 December 2009 it produced 11,497 thousand tonnes of crude oil (232 kbopd), which includes the Company's stakes in both JV Kazgermunai LLP ("Kazgermunai") and CCEL ("Karazhanbasmunai"). This is 458 thousand tonnes, or 3.8% less than in 2008.
KMG EP's production from its core assets (Uzenmunaigas and Embamunaigas) was 8,962 thousand tonnes of crude oil (181 kbopd), 508 thousand tonnes less than in 2008. The decline was due to KMG EP's planned reduction in drilling and production in 2009 in a lower oil price environment. Production was also adversely impacted by severe weather conditions in the beginning of the year and interruptions in power supply in the first and third quarters of 2009.
According to preliminary data, during 2009 the Company supplied 8,966 thousand tonnes of crude oil (181 kbopd), excluding the share in supply from Kazgermunai and Karazhanbasmunai. Of this amount, 6,946 thousand tonnes (140 kbopd) were exported.
The Company's share in the sales volumes from Kazgermunai and CCEL was 2,450 thousand tonnes of crude oil (49 kbopd) in 2009, including 2,054 thousand tonnes (41 kbopd) supplied to export markets.
Commenting on the operating results, Kenzhebek Ibrashev, the CEO of KMG EP, said: "Despite severe weather conditions and disrupted power supplies, the decrease in 2009 production was kept close to planned levels. In 2010 we plan to increase capital expenditure on our main assets and expand our resource base through further acquisitions in order to maintain output from the core fields and achieve overall growth in production."
From mid 2009 KMG EP has been increasing its capital expenditure and is planning to invest about 95bn Tenge (US$633m) in 2010 to primarily fund development and exploration drilling, as well as the implementation of the associated gas utilisation program. Production for 2010 at Uzenmunaigas and Embamunaigas is expected to be 9,200 thousand tonnes (186 kbopd).
In 2010 KMG EP is expected to add approximately 17% to its consolidated production, due to the impact of a 33% share in production from the PetroKazakhstan Inc. acquisition, which was finalized in December 2009.
NOTES TO EDITORS
KMG EP is among the top three Kazakh oil and gas producers. The overall production in 2009 was 11.5mmt (an average of 232kbopd) of crude oil, including the Company's share in Kazgermunai and CCEL. The total volume of proved and probable reserves, as at the end of 2008, was 241mmt (1.8bn bbl), excluding the relevant proportion of reserves at Kazgermunai and CCEL; including the share of reserves from Kazgermunai and CCEL the 2P reserves are over 2.1 bn barrels. The Company's shares are listed on Kazakhstan Stock Exchange and the GDRs are listed on The London Stock Exchange. The Company raised over US$2bn in its IPO in September 2006. In July 2009 International rating agency Standard & Poor's (S&P) confirmed KMG EP's "BB+" corporate credit rating and assigned the Company "GAMMA-6" rate.
For further details please contact us at:
«KMG EP». Public Relations (+7 7172 97 7600)
Daulet Zhumadil
E-mail: pr@kmgep.kz
«KMG EP». Investor Relations (+7 7172 97 5433)
Asel Kaliyeva
E-mail: ir@kmgep.kz
Pelham PR (+44207 337 15 17)
Elena Dobson
E-mail: Elena.dobson@pelhampr.com
Forward-looking statements
This document includes statements that are. or may be deemed to be. ''forward-looking statements''. These forward-looking statements can be identified by the use of forward-looking terminology. including. but not limited to. the terms ''believes''. ''estimates''. ''anticipates''. ''expects''. ''intends''. ''may''. ''target''. ''will''. or ''should'' or. in each case. their negative or other variations or comparable terminology. or by discussions of strategy. plans. objectives. goals. future events or intentions. These forward-looking statements include all matters that are not historical facts. They include. but are not limited to. statements regarding the Company's intentions. beliefs and statements of current expectations concerning. amongst other things. the Company's results of operations. financial condition. liquidity. prospects. growth. potential acquisitions. strategies and as to the industries in which the Company operates. By their nature. forward-looking statements involve risk and uncertainty because they relate to future events and circumstances that may or may not occur. Forward-looking statements are not guarantees of future performance and the actual results of the Company's operations. financial condition and liquidity and the development of the country and the industries in which the Company operates may differ materially from those described in. or suggested by. the forward-looking statements contained in this document. The Company does not intend. and does not assume any obligation. to update or revise any forward-looking statements or industry information set out in this document. whether as a result of new information. future events or otherwise. The Company does not make any representation. warranty or prediction that the results anticipated by such forward-looking statements will be achieved.