KMG EP sees lower oil output from Kazakh field
Jul 18. Reuters. ALMATY
KazMunaiGas Exploration Production on Wednesday cut its output forecast for its largest Kazakh oilfield, after bad weather and the residual effects of a labour dispute led to a decline in six-month output.
KazMunaiGas EP, the London-listed arm of Kazakh state oil and gas company KazMunaiGas, produced 6.06 million tonnes (248,000 barrels per day) of crude in the first half of 2012, down 4 percent from the same period last year.
In a statement, the company attributed the decline to a reduction in output at its Uzenmunaigas unit in western Kazakhstan, scene of a protracted industrial dispute last year that erupted into deadly riots in the nearby town of Zhanaozen.
Production at Uzenmunaigas was hit by the residual effect of wells having been idle during this dispute, the company said, as well as adverse weather conditions in the first quarter of this year and obsolete infrastructure and equipment.
KazMunaiGas EP said it expected production at the Uzen field to reach 5.1 million tonnes in 2012, down from an earlier forecast of 5.8 million tonnes. In the first six months of 2012, the subsidiary produced 2.47 million tonnes.
The company forecast combined production at its major Kazakh units, Uzenmunaigas and Embamunaigas, would reach 7.92 million tonnes in 2012. It had earlier forecast full-year output of 8.62 million tonnes.
KazMunaiGas EP did not officially revise its 2012 full-year production forecast of 13.01 million tonnes, although the Uzen revision is likely to push the overall number lower.
The company said its share in first-half production from the Kazgermunai, CCEL and PetroKazakhstan Inc joint ventures rose by 1 percent year-on-year to 2.22 million tonnes, or 92,000 barrels per day. Their full-year output plans are unchanged, it said.