KazMunaiGas Exploration Production Reports 5% Decrease In Oil Production In Q1 2017

Kazakhstan Will Sell A Stake In KazMunaiGas

JSC KazMunaiGas Exp

KMG EP 1Q2017 Operating results

RNS Number : 2180D
JSC KazMunaiGas Exploration Prod
25 April 2017

                       PRESS – RELEASE

Operating results for the first quarter of 2017

 

Astana, 25 April 2017. JSC KazMunaiGas Exploration Production (“KMG EP” or “Company”) announces its operating results for the first quarter of 2017.

 

Production

 

Overall, KMG EP, including its stakes in Kazgermunai (“KGM”), CCEL (“Karazhanbasmunai”) and PetroKazakhstan Inc. (“PKI”), produced 2,904 thousand tonnes of crude oil (238 kbopd) for the first quarter of 2017, a 5% decrease on the same period of 2016. The lower levels of production were largely due to natural decline in production of oil at PKI and fewer wells drilled at Ozenmunaigas JSC (“OMG”), which is in line with the current Company’s plan. In order to achieve the consolidated production plan of 12.2 million tonnes, which is higher than the actual production in 2016, additional geological and technical measures at existing wells are provided for at OMG.

 

OMG produced 1,335 thousand tonnes (109 kbopd), a 4% decrease as compared to the same period of 2016, mainly due to a lower daily production rate as at the beginning of the year, fewer wells drilled and less geological and technical measures performed. Embamunaigas JSC (“EMG”) produced 691 thousand tonnes (57 kbopd), which is 2% less than in the same period of 2016. The total volume of oil OMG and EMG produced was 2,026 thousand tonnes (166 kbopd), which is 3% lower compared to the same period of 2016.

 

The Company’s share in production from KGM, CCEL, and PKI for the first quarter of 2017 amounted to 878 thousand tonnes of crude oil (72 kbopd), which is 8% less than in the same period of 2016, mainly due to a natural decline in production of oil at PKI.

 

Crude oil supplies and sales of oil products

 

In the first quarter of 2017, the Company’s combined sales from OMG and EMG were 1,939 thousand tonnes (156 kbopd), of which 66% or 1,284 thousand tonnes (103 kbopd) of oil were exported and 655 thousand tonnes (53 kbopd) of oil were sold to the domestic market. The share of domestic supplies from the resources of OMG and EMG was 34% in the first quarter of 2017 as compared to 40% in the same period of 2016.

 

Out of 655 thousand tonnes (53 kbopd) of crude oil supplied by OMG and EMG to the domestic market, 520 thousand tonnes (42 kbopd) were supplied to Atyrau Refinery and 135 thousand tonnes (11 kbopd) were supplied to Pavlodar Refinery.

 

During the first quarter of 2017 sales of oil products were 641 thousand tonnes as per the oil processing scheme. For more details about volumes of sales of oil products please see Table No.2.

 

The Company’s share in the sales from KGM, CCEL, and PKI was 871 thousand tonnes of crude oil (72 kbopd), including 375 thousand tonnes (30 kbopd) supplied to the export markets, or 43% of the total sales volume. The domestic sales volume was 496 thousand tonnes (42 kbopd).

 

Total 2P reserves of liquid hydrocarbons

 

The Company’s share in Proved and Probable (2P) reserves of KGM (50% stake), CCEL (50% stake) and PKI (33% stake) as at the end of 2016 was 37 million tonnes (266 million barrels) or 21% of the total consolidated reserves of the Company. This compares with 41 million tonnes (294 million barrels) as at the end of 2015 or 21% of the total consolidated reserves of the Company. The reserves assessment of 2P reserves of joint ventures were made separately by independent auditors[1].

 

As announced, according to the report by DeGolyer and MacNaughton, 2P reserves of liquid hydrocarbons as at 31 December 2016 excluding the Company’s stakes in KGM, CCEL and PKI were 145 million tonnes (1,061 million barrels).

 

Thus, the total 2P reserves of liquid hydrocarbons of KMG EP including its stakes in KGM, CCEL, and PKI as at the end of 2016 amounted to 182 million tonnes (1,327 million barrels).

Table No.1. Production and sales of oil for the first quarter of 2017

ktonnes

kbopd

2016

2017

y/y, %

2016

2017

Oil production volumes

OMG

1 387

1 335

-4%

113

109

EMG

702

691

-2%

57

57

Total from  OMG and EMG

2 089

2 026

-3%

171

166

KGM, 50%

365

346

5%

31

30

CCEL, 50%

265

261

-2%

20

19

PKI, 33%

324

271

-16%

28

23

Total from joint ventures

954

878

8%

79

72

Total oil production

    3 043

   2 904

  –5%

    250

238

Crude oil and oil product sales

OMG and EMG

Uzen-Atyrau-Samara

639

719

13%

51

58

CPC

581

565

-3%

47

45

Export

1 220

1 284

5%

98

103

Atyrau Refinery

580

520

-10%

47

42

Pavlodar Petrochemical Plant

250

135

-46%

20

11

Domestic market

830

655

-21%

67

53

Total from OMG and EMG

2 050

1 939

-5%

165

156

Export, %

60%

66%

Domestic market, %

40%

34%

KGM (50%)

Export

144

66

54%

12

6

Domestic market

220

279

27%

19

24

Total from KGM

364

345

5%

31

30

CCEL (50%)

Export

283

230

-19%

21

17

Domestic market

0

23

100%

0

2

Total from CCEL

 283

253

-11%

21

19

PKI (33%)

Export

132

79

40%

11

7

Domestic market

187

194

4%

16

17

Total from PKI

319

273

14%

27

24

Total from joint ventures

Export

559

375

-33%

45

30

Domestic market

406

496

22%

35

42

Total from joint ventures

965

871

-10%

80

72

Export, %

58%

43%

Domestic market, %

42%

57%

 

 

Table No.2. Production and sales of oil products for the first quarter of 2017

Petroleum products

Production

Sales

ktonnes

Atyrau

Refinery

Pavlodar

Refinery

Total

Atyrau

Refinery

Pavlodar

Refinery

Total

80 RON gasoline

8,19 

5,81 

14,00 

8,16 

7,53 

15,69 

92 RON gasoline

53,73 

33,99 

87,72 

54,14 

36,74 

90,88 

95 RON gasoline

5,42 

2,59 

8,00 

11,59 

2,78 

14,36 

Diesel fuel

138,83 

50,51 

189,34 

136,83 

48,61 

185,44 

Aviation fuel

4,24 

 

4,24 

3,38 

 

3,38 

Total light petroleum products

210,41 

92,89 

303,30 

214,09 

95,67 

309,76 

Vacuum gas oil

92,00 

 

92,0 

84,09 

 

84,09 

Mazut

154,37 

24,50 

178,88 

159,17 

25,01 

184,18 

Bitum

 

 

 

 

 

 

Total dark petroleum products

246,37 

24,50 

270,88 

243,25 

25,01 

268,26 

Liquefied gas

6,53 

8,74 

15,27 

6,53 

10,19 

16,72 

Furnace oil

7,32 

 

7,32 

7,48

 

7,48 

Sulfur

0,27 

0,92 

1,19 

0,6

 

0,6

Coke

15,08 

6,50 

21,59 

14,11 

22,29 

36,40 

Benzol

1,14 

 

1,14 

1,23 

 

1,23 

Others

 

0,19 

0,19 

 

Total other petroleum products

30,35 

16,36 

46,71 

30,01 

32,48 

62,49 

Losses

32,87 

16,41 

49,28 

 

 

Total

520,00 

150,16

670,16 

487,35

153,16 

640,51 

 

 

 

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 2016 was 182 million tonnes (1,327 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.

For further details please contact us at:

KMG EP. Investor Relations (+7 7172 97 5433)
Saken Shoshanov
e-mail: ir@kmgep.kz

 

KMG EP. Public Relations (+7 7172 97 7887)
Bakdaulet Tolegen
e-mail:
pr@kmgep.kz  

 

Bell Pottinger (+44 203 772 2500)

Henry Lerwill

e-mail:  KMGEP@bellpottinger.com 

 

 

Forward-looking statements

This document includes statements that are, or may be deemed to be, ”forward-looking statements”. These forward-looking statements can be identified by the use of forward-looking terminology including, but not limited to, the terms ”believes”, ”estimates”, ”anticipates”, ”expects”, ”intends”, ”may”, ”target”, ”will”, or ”should” or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. These forward-looking statements include all matters that are not historical facts. They include, but are not limited to, statements regarding the Company’s intentions, beliefs and statements of current expectations concerning, amongst other things, the Company’s results of operations, financial condition, liquidity, prospects, growth, potential acquisitions, strategies and as to the industries in which the Company operates. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances that may or may not occur. Forward-looking statements are not guarantees of future performance and the actual results of the Company’s operations, financial condition and liquidity and the development of the country and the industries in which the Company operates may differ materially from those described in, or suggested by, the forward-looking statements contained in this document. The Company does not intend, and does not assume any obligation, to update or revise any forward-looking statements or industry information set out in this document, whether as a result of new information, future events or otherwise. The Company does not make any representation, warranty or prediction that the results anticipated by such forward-looking statements will be achieved.

 


[1] The assessment of reserves as at 31 December 2016 of KGM was made by Neftegazconsult Kazakhstan, assessment of reserves of PKI was made by McDaniel and Associates, assessment of reserves of CCEL was made by Miller&Lents.

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