26 Mar 2010 13:18
Normalization of the situation at Uzenmunaigas
Astana, 26 March 2010. Uzenmunaigas (UMG) production branch of JSC KazMunaiGas Exploration Production ("KMG EP" or "the Company") is taking measures to recover production level which declined as a result of the recent industrial action at UMG. The action, earlier declared illegal by a court, was ended on the 19th of March and the operations of all business units within Uzenmunaigas have returned to normal. Weekend and holiday time is being used to reduce the underperformance of UMG with respect to the production plan.
As of 25 March the loss of production (difference between actual and planned output) at UMG as a result of the industrial action is estimated at 27.6 thousand tonnes. The impact on the Company's full year production will depend on how quickly the loss of production can be recovered.
A reconciliation committee was established after the participants of the action elected their representatives on the 17th of March. The committee reviewed all demands and directed them to appropriate authorities. In particular the Board of directors of KMG EP will be asked to consider a pay increase for the employees involved in operations with hazardous working conditions.
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 (Karazhanbasmunai). 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 in December 2009 assigned the Company "GAMMA-6" level.
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
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