JSC KazMunaiGas: Resolutions of the Meeting of the Board of Directors
JSC KazMunaiGas Exploration Production (“KMG EP” or the “Company”) held its regular Board of Directors (“the Board”) meeting, where the Board approved a revision of the 2016 capital expenditures plan.
As previously announced, the Company started construction of a gas treatment unit (GTU) for the Prorva group of fields at JSC “Embamunaigas” in 2014. Construction of the GTU will prevent unnecessary gas flaring to comply with the Kazakh legislation, as well as achieve the planned volume of oil production. Commissioning of the GTU is expected by the middle of 2017.
During construction of the GTU, the processing scheme was significantly revised, which resulted in an increased construction area, additional sub-facilities and larger equipment capacity. Moreover, the cost of imported purchased equipment increased due to the switch to a freely floating Tenge from August 2015. Jointly these factors resulted in an increase in overall project costs of 17.9 billion Tenge.
The Board has also preliminarily agreed on the budget for 2017 and business plan for 2017-2021. Further details will be announced following final approval.
Notes to Editors KMG EP is among the top three Kazakh oil producers. The overall production in 2015 was 12.4 million tonnes (251 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 2015 was 193 million tonnes (1,409 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.
