KMG EP Refused From Its Agent’s Services On Oil Products Sale Since January

KMG EP Refused From Its Agent's Services On Oil Products Sale Since January

KazMunaiGas Exploration and Production (KMG EP) has ceased using JSC KazMunaiGas – Refining & Marketing as its sales agent and started marketing refined products on its own account since January 1 2017.

“On January 1, 2017 the company ceased using JSC KazMunaiGas – Refining & Marketing (KMG RM) as its sales agent and started marketing refined products on its own account ,” said the company.

In January 2017, the company’s combined sales from Ozenmunaigas JSC (OMG) and Embamunaigas JSC (EMG) were 709 thousand tonnes (165 kbopd) of crude oil, of which 69% or 486 thousand tonnes (113 kbopd) of crude oil were exported and 223 thousand tonnes (52 kbopd) of crude oil were sold to the domestic market.

“Out of 223 thousand tonnes (52 kbopd) of crude oil supplied by OMG and EMG to the domestic market, 180 thousand tonnes (42 kbopd) were supplied to the Atyrau Refinery (“ANPZ”) and 43 thousand tonnes (10 kbopd) were supplied to the Pavlodar Refinery (PNHZ) for further refining as per the independent oil processing scheme,” said the company.

The share of domestic supplies from the resources of OMG and EMG decreased to 31% in January 2017 as compared to 41% in 2016. 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.

According to preliminary data, net revenue achieved from the sale of refined oil products (net of all processing and marketing costs ) in January 2017 was 58,409 tenge per tonne at ANPZ and 55,733 tenge per tonne at PNHZ. This is compared with net revenue of 42,366 tenge per tonne at ANPZ and 51,743 tenge per tonne at PNHZ achieved from the sale of refined oil products in April-December 2016.

The net cash position at 31 January 2017 was 1,163bn tenge (US$3.6bn ), representing a US$72m increase over the net cash position as of 31 December 2016. Approximately 97% of cash, cash equivalents and other financial assets were denominated in US Dollars and other foreign currencies, with the remainder denominated in tenge.

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