Operating results of KMG EP for the first nine months of 2017

KMG EP Jan-Sept Profit Jumps on Higher Crude Price

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

Production

KMG EP, including its stakes in Kazgermunai (“KGM”), Karazhanbasmunai (“CCEL”) and PetroKazakhstan Inc. (“PKI”), produced 8,884 thousand tonnes of crude oil (239 kbopd) in the first nine months of 2017, a 3% decrease over the same period of 2016.
Ozenmunaigas JSC (“OMG”) produced 4,092 thousand tonnes (110 kbopd), a 2% decrease year on year, mainly due to fewer wells drilled and the performance of existing well stock. Embamunaigas JSC (“EMG”) produced 2,117 thousand tonnes (57 kbopd), 0.2% less than in the same period of 2016. The total volume of oil OMG and EMG produced was 6,209 thousand tonnes (167 kbopd), a 1% decrease compared to the same period of 2016.

The Company’s share of production from KGM, CCEL and PKI for the first nine months of 2017 amounted to 2,675 thousand tonnes of crude oil (72 kbopd), 6% less than in the same period of 2016. This was mainly driven by a natural decline in oil production at PKI, which produced 13.5% per day less than in the same period of 2016.

Crude oil supplies and sales of oil products

In the first nine months of 2017, the Company’s combined sales from OMG and EMG were 6,056 thousand tonnes (160 kbopd). Of these crude oil sales, 4,200 thousand tonnes (111 kbopd) were exported and 1,856 thousand tonnes (49 kbopd) were sold to the domestic market, equivalent to 31% of the total sales volume. In the same period of 2016, the Company sold 40% of crude oil in the domestic market.

Out of 1,856 thousand tonnes (49 kbopd) of crude oil supplied by OMG and EMG to the domestic market, 1,437 thousand tonnes (38 kbopd) were supplied to Atyrau Refinery (ANPZ) and 419 thousand tonnes (11 kbopd) were supplied to Pavlodar Refinery (PNHZ).

Under the independent oil processing scheme, sales of oil products for the first nine months of 2017 were 1,774 thousand tonnes. For more details about volumes of sales of oil products please see Table No.2.

The Company’s share in sales from CCEL, KGM, and PKI amounted to 2,552 thousand tonnes of oil (69 kbopd). Of this, 1,045 thousand tonnes (27 kbopd) were exported with the remaining 1,506 thousand tonnes (42 kbopd) supplied to the domestic market, equivalent to 59% of total sales volume.

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

ktonnes

 

kbopd

 

9M2016

9M2017

y/y, %

9M2016

9M2017

Production

 

 

 

 

 

OMG

4 181

4 092

-2%

112

110

EMG

2 122

2 117

-0.2%

57

57

Total from OMG and EMG

303

209

1%

169

167

KGM, 50%

1 100

1 063

-3%

31

30

CCEL, 50%

793

801

1%

19

20

PKI, 33%

938

811

-14%

27

23

Total from joint ventures

2 831

675

-6%

77

72

Total oil production

134

8 884

3%

246

239

Crude oil sales 

 

 

 

 

OMG and EMG
Uzen-Atyrau-Samara

2 078

2 458

18%

55

65

CPC

1 665

1 742

5%

44

46

Export

3 743

4 200

12%

99

111

Atyrau Refinery

1 981

1 437

-27%

52

38

Pavlodar Refinery

559

419

-25%

15

11

Domestic market

2 540

1 856

-27%

67

49

Total from OMG and EMG

283

6 056

-4%

166

160

Export, %

60%

69%

 

 

 

 

 

Domestic market, %

40%

31%

 

 

 

 

 

KGM (50%)
Export

356

181

-49%

10

5

Domestic market

742

879

18%

21

25

Total from KGM

098

1 060

3%

31

30

CCEL (50%)

 

 

 

 

 

Export

747

661

-12%

18

16

Domestic market[1]

0

20

100%

1

Total from CCEL

747

681

-9%

18

17

PKI (33%)

 

 

 

 

 

Export

313

203

-35%

9

6

Domestic market

611

608

-1%

17

17

Total from PKI

924

811

-12%

26

23

Total from joint ventures

 

 

 

 

 

Export

1 416

1 045

-26%

37

27

Domestic market

1 353

1 506

11%

38

42

Total from joint ventures

769

552

-8%

75

69

Export, %

51%

41%

 

 

 

 

 

Domestic market, %

49%

59%

 

 

 

 

 

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

Oil products

Production

Sales

ktonnes

Atyrau

Refinery

Pavlodar

Refinery

Total

Atyrau

Refinery

Pavlodar

Refinery

Total

80 RON gasoline

            18,55

              17,73

             36,28

             18,56

         20,43

    39,00

92 RON gasoline

            137,32

             88,77

            226,09

            139,68

95,66

  235,34

95 RON gasoline

             16,34

7,93

             24,27

             24,95

            8,78

    33,73

Diesel fuel

           430,81

            139,41

           570,22

           423,77

        140,80

  564,57

Aviation fuel

               8,00

                  –

               8,00

               7,99

                  –

      7,99

Total light oil products

            611,01

        253,84

       864,85

       614,95

265,67

  880,63

Vacuum gasoil

           239,26

                4,72

           243,98

           241,68

                  –

  241,68

Mazut

           437,18

             59,11

           496,30

           439,47

          64,55

  504,02

Bitumen

                  –

              17,63

              17,63

                  –

          17,63

   17,63

Total dark oil products

         676,44

            81,46

         757,90

         681,15

         82,17

   763,32

Liquefied gas

              10,32

              22,89

33,21

              10,32

          24,90

    35,22

Furnace oil

             16,35

                  –

             16,35

             15,14

                  –

    15,14

Sulfur

               0,70

               2,58

               3,28

1,31

            0,24

      1,55

Coke

             37,71

             16,81

             54,52

             38,85

          36,47

    75,32

Benzol

3,07

3,07

3,22

3,22

Others

                  –

             2,07

2,07

                  –

                  –

            –

Total other oil products

           68,15

            44,35

            112,50

            68,83

              61,61

            130,45

Losses

             81,40

             47,15

            128,55

           –

Total

         1 437,00

         426,80

         1 863,80

         1 364,94

        409,46

1 774,40

 

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

 

Finsbury (+44 (0)20 7251 3801)
Dorothy Burwell
e-mail: KMGEP@finsbury.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.

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