9 Mar 2010 13:00
Update on the situation at Ozenmunaigas
Astana, 9 March 2010. JSC KazMunaiGas Exploration Production ("KMG EP" or "the Company") reports on the situation at the "Ozenmunaygaz" (OMG) production unit in the city of Zhanaozen (Mangistau region).
The industrial action at the unit which began on 1 March continues. Every day from 4 to 8 March between 1.5 and 3 thousand employees, mainly engaged in servicing wells and transportation, did not come to work. However, the oil production at "Ozenmunaigaz" was not suspended. Engineering and technical personnel that provides continuous output were working.
The direct loss of daily production resulting from the action is currently assessed at 200-400 tons of oil. This is within 1% of KMG EP's consolidated daily output. The degree of impact on the annual production of the Company depends on how quickly normal operation at the production unit is restored.
KMG EP management is continuing its efforts to build a constructive dialogue with the protesters.
Please refer to the Company's website for further details.
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 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
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.