23 Dec 2009 07:05
PRESS-RELEASE
International rating agency Standard & Poor's
has replaced its Corporate Governance Score on KMG EP
with a GAMMA score at GAMMA-6 level
Astana, 23 December 2009. International rating agency Standard & Poor's ("S&P") has replaced its Corporate Governance Score ("CGS") on JSC KazMunaiGas Exploration Production ("KMG EP", "the Company") with a GAMMA score at GAMMA-6 level.
The GAMMA score replaces Standard & Poor's CGS that was assigned to KMG EP on 1 Oct 2007. The GAMMA score is based on an updated CGS methodology and introduces two new elements of governance analysis: the enterprise risk management system ("ERM") and the strategic process. Standard & Poor's believes GAMMA score is a more comprehensive assessment of governance structures and practices.
According to Standard & Poor's analysts KMG EP's governance structures have shown an incremental overall improvement in 2009, with meaningful progress in the areas of internal audit, risk management and strategic planning.
The strengths of corporate governance practices at KMG EP include: effective performance of the independent directors in balancing the majority shareholder and close management oversight; legislated and transparent mutual obligations with the parent company NC "KazMunayGas"; strong level of Company's transparency; competent and independent audit; effective cooperation with the shareholders which enjoy a broad measure of rights; generally strong shareholder meeting procedures.
NOTES TO EDITORS
KMG EP is among the top three Kazakh oil and gas producers. The overall production in 2008 was 11.95mmt (an average of 240kbopd) 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, is 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 London Stock Exchange. The Company raised over US$2bn in its IPO in September 2006. International rating agency Standard & Poor's (S&P) confirmed the Corporate Governance Score of KMG EP at "CGS 6" and confirmed its "BB+" corporate credit rating.
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
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