KMG EP Announced Operating Results For The Year 2016

KMG EP Board Of Directors Approved Increase In Capital Expenditure For 2017

Astana, 27 January 2017. JSC KazMunaiGas Exploration Production (“KMG EP” or “Company”) announces its operating results for the year 2016.

Production

Overall, KMG EP, including its stakes in Kazgermunai (“KGM”), CCEL (“Karazhanbasmunai”) and PetroKazakhstan Inc. (“PKI”), produced 12,154 thousand tonnes of crude oil (245 kbopd) for 2016, a 2% decrease on 2015.

Ozenmunaigas JSC (“OMG”) produced 5,555 thousand tonnes (112 kbopd), a 1% increase as compared to 2015. Embamunaigas JSC (“EMG”) produced 2,832 thousand tonnes (57 kbopd), a 0.3% increase as compared to 2015. The total volume of oil OMG and EMG produced was 8,387 thousand tonnes (169 kbopd), which is a 1% increase compared to production for 2015.

The Company’s share in production from CCEL, KGM, and PKI for 2016 amounted to 3,767 thousand tonnes of crude oil (76 kbopd), 6% less than in 2015, mainly due to a natural decline in production of oil from PKI assets.

Crude oil supplies and sales of oil products

In 2016, the Company’s combined sales from OMG and EMG were 8,405 thousand tonnes (165 kbopd) of which 4,946 thousand tonnes (97 kbopd) of oil was exported, 59% of the total sales volume; and 3,459 thousand tonnes (68 kbopd) of oil sold into the domestic market. Another 4 thousand tonnes of oil products were sold to the domestic market.

Out of 3,459 thousand tonnes (68 kbopd) of oil supplied by OMG and EMG to the domestic market, 2,578 thousand tonnes (51 kbopd) was supplied to Atyrau Refinery; and 881 thousand tonnes (17 kbopd) was supplied to Pavlodar Petrochemical Plant.

In Q1 2016, before the Company switched to independent oil processing scheme[1], domestic supplies were 830 thousand tonnes of oil. For the remainder of 2016, 2,629 thousand tonnes of oil was supplied to the domestic market for further refining. 

As per the independent oil processing scheme, sales of oil products between April and December of 2016 was 2,324 thousand tonnes of oil products. For more details on petroleum product sales, please see Table No.2 below.

The share of domestic supplies from the resources of OMG and EMG was up to 41% in 2016 as compared to 33% in 2015. As previously reported, it is expected that the share of domestic supplies in 2017 will be 2.9 million tonnes of oil (57 kbopd) or around 33% of the total sales.

The Company’s share in the sales from CCEL, KGM, and PKI was 3,676 thousand tonnes of crude oil (75 kbopd), including 1,832 thousand tonnes (36 kbopd) supplied to export markets, or 50% of total sales volume. The domestic sales volume was 1,844 thousand tonnes (39 kbopd).

The Company’s oil supplies, including the share in KGM, CCEL, and PKI, changed in 2016 as compared to 2015. The share of export sales was up from 52% to 56%; the share of domestic sales was up from 40% to 44%; and supplies to Russia (intergovernmental agreement) were down from 8% to 0%.

Table 1. Production and sales of oil and oil products for 2016

thousand tonnes

kbopd

2015

2016

y/y, %

2015

2016

Oil production volumes

OMG

5 510

5 555

1%

111

112

EMG

2 823

2 832

0%

57

57

Total from OMG and EMG

8 333

8 387

1%

168

169

KGM, 50%

1 500

1 468

-2%

32

31

CCEL, 50%

1 069

1 064

0%

20

19

PKI, 33%

1 449

1 235

-15%

31

26

Total from joint ventures

4 018

3 767

-6%

83

76

Total oil production

    12 351

   12 154

  -2%

    251

    245

Crude oil sales 

OMG and EMG

Uzen-Atyrau-Samara

2 797

2 797

0%

55

55

CPC

1 850

2 149

16%

37

42

Export

4 647

4 946

6%

92

97

Atyrau Refinery

2 420

2 578

7%

48

51

Pavlodar Petrochemical Plant

260

881

239%

5

17

sales of OMG oil products

62

4

-95%

1

Domestic market

2 742

3 462

26%

54

68

Russia

916

-100%

18

Total from OMG and EMG

8 305

8 408

1%

164

165

Export, %

56%

59%

Domestic market, %

33%

41%

Russia, %

11%

0%

KGM (50%)

Export

440

434

-1%

9

9

Domestic market

1051

1 031

-2%

22

22

Total from KGM

1491

1 465

-2%

31

31

CCEL (50%)

Export

776

974

26%

14

18

Domestic market

191

19

-90%

3

0

Russia

70

-100%

1

Total from CCEL

1 036

993

-4%

18

18

PKI (33%)

Export

491

424

-14%

10

9

Domestic market

925

794

-14%

20

17

Total from PKI

1 416

1 218

-14%

30

26

Total from joint ventures

Export

1 707

1 832

7%

33

36

Domestic market

2 167

1 844

-15%

45

39

Russia

70

-100%

1

Total from joint ventures

3 944

3 676

-7%

79

75

Export, %

43%

50%

Domestic market, %

55%

50%

Russia, %

2%

0%

Total from KMG EP

Export

6 354

6 778

                7%

126

133

Domestic market

4 910

5 306

8%

100

107

Russia

986

0

-100%

19

Total from KMG EP

12 249

12 084

-1%

245

240

Export, %

52%

56%

Domestic market, %

40%

44%

Russia, %

8%

0%

 Table 2. Production and sales of oil products for 2016 

Oil products

Production

Sales

thousand tonnes

Atyrau

Refinery

Pavlodar

Petrochemical

Plant

Total

Atyrau

Refinery

Pavlodar

Petrochemical

Plant

Total

80 RON gasoline

22,7 

25,8 

48,5 

22,7 

22,9 

45,6 

92 RON gasoline

176,1 

112,8 

288,9 

166,7 

106,9 

273,6 

95 RON gasoline

31,7 

9,6 

41,3 

24,8 

10,2 

35,0 

Diesel fuel

610,5 

198,2 

808,7 

603,4 

194,2 

797,6 

Aviation fuel

10,8 

0,0 

10,8 

10,5 

0,0 

10,5 

Total light oil products

851,9 

346,4 

1 198,3 

828,1 

334,2 

1 162,3 

Vacuum gas oil

332,3 

10,6 

342,9 

328,9 

10,6 

339,5 

Fuel oil

604,8 

89,1 

693,9 

590,7 

83,1 

673,8 

Bitumen

0,0 

26,0 

26,0 

0,0 

26,0 

26,0 

Total dark oil products

937,1 

125,7 

1 062,8 

919,6 

119,7 

1 039,3 

Liquefied gas

13,2 

27,1 

40,3 

13,2 

26,6 

39,8 

Heating oil

29,3 

0,0 

29,3 

28,6 

0,0 

28,6 

Sulfur

1,2 

3,3 

4,5 

0,6 

0,0 

0,6 

Calcinated coke

27,2 

0,0 

27,2 

27,2 

0,0 

27,2 

Total coke

22,3 

25,0 

47,3 

21,0 

2,2 

23,2 

Others

3,0 

23,1 

26,1 

2,7 

0,0 

2,7 

Other oil products

96,2 

78,5 

174,7 

93,3 

28,8 

122,1 

Losses

113,8 

65,2 

179,0 

0,0 

0,0 

0,0 

Total

1 999,0 

616,8 

2 614,8 

1 841,0 

482,7 

2 323,7 

NOTES TO EDITORS

KMG EP is among the top three Kazakh oil producers based on the 2016 results. The overall production in 2016 was 12.2 million tonnes (245 kbopd) of crude oil, including the Company’s share in Kazgermunai, CCEL and PKI. The Company’s volume of proved and probable reserves excluding shares in the associates, at the end of 2015 was 193 million tonnes (1,409 mmbbl). The Company’s shares are listed on the Kazakhstan Stock Exchange and the GDRs are listed on The London Stock Exchange. The Company raised over US$2bn at its IPO in September 2006.

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