KazMunaiGas Don’t Plan To Reduce Oil Output In 2017

KMG EP Jan-Sept Profit Jumps on Higher Crude Price

(Reuters) – Dec 7 Kazakh state oil and gas firm KazMunaiGas will produce roughly 22.5 million tonnes of oil next year, about the same as in 2016, Sauat Mynbayev, the firm’s board chairman, told Reuters on Wednesday.

“We don’t plan to reduce output,” said Mynbayev.

National Company “KazMunayGas” (KMG) is the Kazakhstan operator for exploration, production, refining and transportation of hydrocarbons, representing the state interests in the oil and gas industry of Kazakhstan. Joint Stock Company “National Company “KazMunayGas” was established by way of merger of “Kazakhoil” National Oil and Gas Company and “Oil and Gas Transportation” National Company pursuant to the Decree of the President of the Republic of Kazakhstan as of February 20, 2002. 90% of KMG shares are owned by Samruk Kazyna National Welfare Fund JSC. 10% of KMG shares are owned by the National Bank of the Republiс of Kazakhstan. National Company “KazMunayGas” is a vertically integrated oil and gas company performing a full production cycle from exploration and production of hydrocarbons, their transportation and refining to provision of customized services.

Main subsidiaries of KazMunayGas are:

  • KazMunaiGas Exploration Production (AO) (KMG EP) onshore oil and gas exploration and production
  • Tengizchevroil (20%) – oil joint venture with Chevron, Lukoil and Exxon-Mobil
  • KazTransOil – oil transportation
    • Port of Batumi – Georgian logistics company
  • KazTransGas – gas transportation. Gazprom is its principal customer, accounting for 64% of its consolidated revenue in 2011, down from 75% in 2010.
  • KazMunayGas Refining and Marketing – oil refining and marketing
    • Rompetrol (75%) – A Romanian oil company
    • Atyrau Refinery – oil refining
  • Kazmortransflot – shipping by tankers
  • KazMunayTeniz – offshore oil and gas exploration and production
  • Atyrau International Airport
  • Eurasia-Air Helicopter Company – helicopter services
  • KazTransCom Telecommunications Company – telecommunication services
  • KazMunaiGas Services Compass – Catering and Support Services

KazMunaiGas Exploration Production (AO) has its equity listed in form of common shares and global depositary receipts on the Kazakhstan Stock Exchange and the London Stock Exchange, respectively.

The company has stakes in LLP Kazgermunai JV, JSC Karazhanbasmunai and PetroKazakhstan Inc. Its two noted producing fields are Uzenmunaigas and Embamunaigas.

KazMunayGas operates 2 oil refineries in Kazakhstan:

  • Pavlodar Refinery: 162,600 bbl/d (25,850 m3/d)
  • Atyrau Refinery: 104,400 bbl/d (16,600 m3/d)

90% of the shares of the company are managed by National Welfare Fund “Samruk-Kazyna”. 10% of KMG shares belong to the National Bank of the Republic of Kazakhstan.