PetroChina’s Kazakh Venture Produces 5.7 Million Tons of Oil

Jan. 19. Bloomberg

PetroChina’s Kazakh Venture Produces 5.7 Million Tons of OilAO Mangistaumunaigas, a Kazakh oil producer half-owned by China’s largest oil company, produced oil and gas equivalent of more than 6 million metric tons last year, China National Petroleum Corp. said in its newsletter.

Crude oil output was at 5.71 million tons and natural gas production reached 390 million cubic meters, CNPC said today, without giving comparative figures. Mangistaumunaigas is a joint venture between KazMunaiGaz National Co. and PetroChina Co., CNPC’s Hong Kong-listed unit.

The oil producer would probably reverse a two-year decline in 2009, its Chief Executive Officer Uzakbai Karabalin said in September. Mangistaumunaigas reached peak output in 2006, when it pumped 5.7 million tons, he said.

KazMunaiGaz and PetroChina agreed in April to pay $3.3 billion to buy the producer, which is developing 15 oil fields in the Central Asian country. China agreed in April to lend $10 billion to Kazakhstan, the biggest energy producer in the former Soviet Union after Russia, in return for the right to invest in Mangistaumunaigas.