KazMunaiGaz Exploration Production reports the loss in daily oil production caused by the labour action at Uzenmunaigas (UMG) production facility in the city of Zhanaozen (Mangistau region). Some of the UMG workers, especially from the transportation unit did not come to work which disrupted normal well servicing and well workover operations.
The Company believes that the demands of protesters are unfounded. This is confirmed by Zhanaozen city court on May 24, 2011. In addition, the Zhanaozen administration never issued a permission to proceed with this labour action.
The loss of daily production is currently about 2,000 tonnes. The degree of impact on the annual production of the Company depends on how quickly stable production at UMG will be restored. Currently, the Company is taking all necessary measures to ensure continuity of oil production and to maintain safety at the UMG site. In accordance with the Labour Code, several participants in the illegal action were fired for the violation of labour discipline.