KMG EP Reports 3% Decrease In Oil Output In Jan-June

KMG EP Jan-Sept Profit Jumps on Higher Crude Price

Astana, 27 July 2017. JSC KazMunaiGas Exploration Production (“KMG EP” or “Company”) announces its operating results for the first six months of 2017.

 

Production

Overall, KMG EP, including its stakes in Kazgermunai (“KGM”), CCEL (“Karazhanbasmunai”) and PetroKazakhstan Inc. (“PKI”), produced 5,885 thousand tonnes of crude oil (240 kbopd) in the first six months of 2017, a 3% decrease over the same period of 2016.

 

Ozenmunaigas (“OMG”) produced 2,703 thousand tonnes (110kbopd), a 3% decrease as compared to the same period of 2016, mainly due to fewer wells drilled. Embamunaigas (“EMG”) produced 1,399 thousand tonnes (57kbopd), 1% less than in the same period of 2016. The total volume of oil OMG and EMG produced was 4,102 thousand tonnes (167kbopd), a 2% decrease compared to the same period of 2016.

 

The Company’s share of production from CCEL, KGM, and PKI for the first six months of 2017 amounted to 1,783 thousand tonnes of crude oil (73kbopd), which is 6% less than in the same period of 2016, mainly due to a natural decline in production of oil at PKI.

 

It should be noted that KMG EP is actively studying methods to enhance oil recovery and preparing redevelopment of certain mature fields to stem the natural decline.

 

 

Crude oil supplies and sales of oil products

 

In the first six months of 2017, the Company’s combined crude oil sales from OMG and EMG were 4,084 thousand tonnes (163kbopd). This includes 2,766 thousand tonnes (110kbopd) of crude oil for export and 1,318 thousand tonnes (53 kbopd) of crude oil to the domestic market, which is 32% of the total sales volume.

 

Out of 1,318 thousand tonnes (53 kbopd) of crude oil supplied by OMG and EMG to the domestic market, 1,042 thousand tonnes (42 kbopd) were supplied to Atyrau Refinery and 276 thousand tonnes (11 kbopd) were supplied to Pavlodar Refinery.

 

During the first six months of 2017 sales of oil products were 1,282 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 CCEL, KGM, and PKI was 1,763 thousand tonnes of crude oil (72 kbopd), including 769 thousand tonnes (30kbopd) supplied to export markets and 994 thousand tonnes (42 kbopd) to the domestic market, which is 56% of total sales volume.

 

 

Table No.1. Production and sales of oil in the first six months of 2017

 

ktonnes

kbopd

6M2016

6M2017

y/y, %

6M2016

6M2017

Production

OMG

             2,779

2,703

-3%

               112

110

EMG

             1,407

1,399

-1%

                 57

57

Total from OMG and EMG

4,186            

4,102

-2%

               169

167

KGM, 50%

                730

711

-3%

                 31

30

CCEL, 50%

                526

528

0%

                 19

19

PKI, 33%

                636

544

-14%

                 27

23

Total from joint ventures

            1,892

1,783

-6%

                77

72

Total oil production

            6,078

5,885

-3%

               246

240

Oil sales

OMG and EMG

Uzen-Atyrau-Samara

             1,359

1,439

6%

54

57

CPC

     1,105

1,327

20%

44

53

Export

            2,464

2,766

12%

                 98

110

Atyrau Refinery

1,280

1,042

– 19%

51

42

Pavlodar Refinery

                424

276

– 35%

17

11

Domestic market

            1,704

1,318

– 23%

                 68

53

Total from OMG and EMG

            4,168

4,084

-2%

               167

163

Export, %

59%

68%

Domestic market, %

41%

32%

KGM (50%)

Export

                197

123

-38%

8

5

Domestic market

                529

585

11%

22

25

Total from KGM

               726

708

-2%

                 31

30

CCEL (50%)

Export

                524

488

– 7%

19

18

Domestic market[1]

20

100%

1

Total from CCEL

               524

508

3%

19

19

PKI (33%)

Export

                201

158

-22%

9

7

Domestic market

                424

389

-8%

18

17

Total from PKI

               625

547

-13%

                 27

23

Total from joint ventures

Export

                922

769

-17%

36

30

Domestic market

                953

994

4%

40

42

Total from joint ventures

            1,875

1,763

6%

                 77

72

Export, %

49%

44%

Domestic market, %

51%

56%

 

 

   

Table No.2. Production and sales of oil products in the first six months of 2017

 

Oil products

Production

Sales

ktonnes

Atyrau Refinery

Pavlodar Refinery

Total

Atyrau Refinery

Pavlodar Refinery

Total

80 RON gasoline

            13.65

              11.65

             25.30

             13.67

         12.81

    26.48

92 RON gasoline

            101.22

             64.54

            165.76

            103.76

          66.10

  169.87

95 RON gasoline

             11.68

               4.19

             15.87

             18.67

            4.83

   23.50

Diesel fuel

           311.48

             94.41

           405.89

           221.6

          90.56

  404.40

Aviation fuel

               6.78

                  –

               6.78

               3.0

                  –

      6.39

Total light oil products

         444.81

         174.78

         619.59

         456.32

       174.31

630.63

Vacuum gasoil

           181.23

                  –

           181.23

           180.69

                  –

  180.69

Mazut

           302.74

             39.41

           342.16

           315.47

          44.24

  359.72

Bitum

                  –

               5.88

               5.88

                  –

            5.61

      5.61

Total dark oil products

         483.97

            45.29

         529.26

         496.16

         49.85

  546.01

Liquefied gas

               8.89

              16.42

             25.32

               8.89

          18.10

    26.99

Furnace oil

             13.27

                  –

             13.27

             14.07

                  –

    14.07

Sulfur

               0.55

               1.79

               2.34

               0.66

            0.24

      0.90

Coke

             29.42

             11.97

             41.38

             28.99

          31.81

60.80

Benzol

2.33

2.33

2.60

2.60

Others

                  –

               1.54

               1.54

                  –

                  –

            –

Total other oil products

           54.45

            31.72

            86.17

            55.22

              50.15

            105.37

Losses

             58.77

             31.73

             90.50

           –

Total

         1 042.0

         283.52

         1 325.52

         1 007.70

        274.31

1282.01

 

 

Notes

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.

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