12 Mar 2010 13:48
Update on the situation at Ozenmunaigas
Astana, 12 March 2010. JSC KazMunaiGas Exploration Production ("KMG EP" or "the Company") reports that the industrial action, begun 1 March at the "Ozenmunaygaz" (OMG) production unit in the city of Zhanaozen (Mangistau region), continues.
Every day from 4 to 12 March between 1.5 and 3 thousand employees, mainly engaged in servicing wells and transportation, did not come to work.
Despite the strike, the oil production at "Ozenmunaigaz" is not suspended. Specially formed shifts of the engineering and technical personnel that contribute to the uninterrupted output are working around the clock.
As provisionally estimated, on 12 March 2010, the loss of daily production at OMG, due to lack of servicing and repairs, is 800 tonnes. The impact on the Company's full year production will depend on how quickly the situation at OMG is stabilised.
KMG EP's management maintains its efforts to build a constructive dialogue with the protesters and is offering possible solutions to the workers' concerns. The Company's priority is to ensure the uninterrupted production and security at the OMG sites.
NOTES
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 ZhumadilE-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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