Operating Results of KMG EP for 2017
JSC KazMunaiGas Exploration Production (“KMG EP” or “Company”) announces its operating results for the year 2017.
Production
KMG EP, including its stakes in Kazgermunai (“KGM”), Karazhanbasmunai (“CCEL”) and PetroKazakhstan Inc. (“PKI”), produced 11,867 thousand tonnes of crude oil (240 kbopd) for 2017, a 2% decrease over 2016.
Ozenmunaigas JSC (“OMG”) produced 5,480 thousand tonnes (111kbopd), a 1% decrease as compared to 2016 mainly due to lower level of production from the existing well stock. Embamunaigas JSC (“EMG”) produced 2,840 thousand tonnes (57kbopd), a 0.3% increase as compared to 2016. The total volume of oil OMG and EMG produced was 8,320 thousand tonnes (168kbopd), a 1% decrease compared to production for 2016.
The Company’s share in production from KGM, CCEL, and PKI for 2017 amounted to 3,547 thousand tonnes of crude oil (72kbopd), 6% less than in 2016. This was mainly driven by a natural decline in oil production at PKI and KGM.
Crude oil supplies and sales of oil products
In 2017, the Company’s combined sales from OMG and EMG were 8,233 thousand tonnes (163kbopd). Of these crude oil sales, 5,700 thousand tonnes (113kbopd) were exported and 2,533 thousand tonnes (50kbopd) were sold to the domestic market, equivalent to 31% of the total sales volume. In 2016, the Company sold 41% of crude oil in the domestic market.
Out of 2,533 thousand tonnes (50 kbopd) of crude oil supplied by OMG and EMG to the domestic market, 1,909 thousand tonnes (38 kbopd) was supplied to Atyrau Refinery and 624 thousand tonnes (12 kbopd) was supplied to Pavlodar Refinery.
Under the independent oil processing scheme, sales of oil products in 2017 was 2,388 thousand tonnes. For more details on oil products sales, please see Table No.2 below.
The Company’s share in the sales from KGM, CCEL, and PKI amounted to 3,414 thousand tonnes of crude oil (70 kbopd). Of this, 1,443 thousand tonnes (28 kbopd) were exported with the remaining1,971 thousand tonnes (42 kbopd) supplied to the domestic market, equivalent to 58% of total sales volume.
The structure of Company’s share in the sales from KGM, CCEL and PKI in 2017 has changed as compared to 2016 in the following manner: the share of export supplies from the total sales volume has decreased from 50% to 42%; the share of domestic supplies has increased from 50% to 58%.
KMG EP is among the top three Kazakh oil producers based on the 2017 results. The overall production in 2017 was 11.9 million tonnes (240 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 and Kazakhstan Stock Exchange. The Company raised over US$2bn at its IPO in September 2006.
