19th Nov 2008 12:55
PRESS-RELEASE
Correction due to a translation error in the English language version
of the Press Release of November 18, 2008
Astana, 19 November 2008. JSC KazMunaiGas Exploration Production today clarified that in the press release filed on November 18, 2008 the title should have read: "Standard & Poor's increased the corporate governance score of JSC KazMunaiGas Exploration Production to CGS 6 on the international scale". The first sentence should have read: "International rating agency Standard & Poor's (S&P) increased the Corporate Governance Score of JSC KazMunaiGas Exploration Production (KMG EP) from CGS 5+ to CGS 6 on the international scale".
The corrected version of the press release should read as follows:
Standard & Poor's increased the corporate governance score of JSC KazMunaiGas Exploration Production to CGS 6 on the international scale
Astana, 18 November 2008. International rating agency Standard & Poor's (S&P) increased the Corporate GovernanceScore of JSC KazMunaiGas Exploration Production (KMG EP) from CGS 5+ to CGS 6 on the international scale. This rating reflects the Company's state of Corporate Governance and takes into account such factors as the ownership structure and external influences; shareholders' rights and relationships with investors and other interested parties; financial transparency, information disclosure and audit; composition and effectiveness of the Board of Directors (BoD).
The awarded rating is an acknowledgement of the Management's efforts to improve the Company's business activities and management processes. Analysts from S&P point out the following: shareholders of the Company have a wide range of guaranteed rights and the relationship with the parent company is transparent and well documented; the AGM and EGM procedures are effective; the BoD consists of highly qualified professionals with 3 out 8 members being Independent Directors with vast international experience; KMG EP uses a well-known international auditor that was selected in an open tender; the auditors' committee is highly qualified and independent; the investor relations programme is wide-spread and on-going; financial reporting is conducted regularly and timely; the dividend policy is well-defined and all shareholders are receiving due dividends on time; clear policy of remuneration of BoD members and top management of the Company is effective.
Commenting on this significant award by S&P, the CEO of KMG EP, Askar Balzhanov said:
"Our company is determined to uphold the best practices of Corporate Governance and to maintain investors' confidence. We continue to improve all aspects of these processes and demonstrate strict adherence to the best international practices in this regard."
In 2008 S&P has introduced a new GAMMA rating, created for those who invest in the companies in the emerging markets, with the primary focus on non-financial risks. GAMMA rating is a new S&P product that takes into account shareholders' influence, shareholders' rights, transparency, audit, risk management, effectiveness of the BoD, strategic processes and motivational systems. KMG EP is considering moving to the new GAMMA rating in 2009.
Notes to Editors
KMG EP is the 3 largest Kazakh oil & gas producers, with over 10.6 mmt (215 kbopd) of crude oil production in 2007 including shares in the production of Kazgermunai and CCEL, and 240 mmt (1.8bn bbl) of proved and probable reserves at the end of 2007 (over 2 bn bbl including interests in Kazgermunai and CCEL). The Company's shares are listed on Kazakhstan Stock Exchange and the GDRs are listed on London Stock Exchange. The Company raised approximately US$2bn in its IPO in September 2006.
For further details please contact us at:
KMG EP, Public Relations (+7 7172 97 7600)
Michael Dorofeyv
E-mail: [email protected]
KMG EP, Investor Relations (+7 7172 97 7971)
Asel Kaliyeva
E-mail: [email protected]
Pelham PR (+44 203 178 44 18)
Elena Dobson
E-mail: Elena.dobson@pelhampr.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.
Related Shares:
Kazmunaigaz Exploration