18th Jan 2007 07:01
JSC KazMunaiGas Exploration Prod18 January 2007 PRESS-RELEASE JSC KazMunaiGas Exploration Production increased oil production in 2006 Astana, 18 January 2007. JSC KazMunaiGas Exploration Production ("KMG EP" or the"Company") announces today its preliminary operating results for the last year.In 2006 the Company produced 9,551 thousand tonnes of oil and gas condensate,186 thousand tonnes more than in 2005. In 2006 the Company supplied 9,419 thousand tonnes of crude oil through thesystem of oil-trunk pipelines, which is 2.2% more than in 2005, includingexports of 6,876 thousand tonnes of oil, a 6.1% increase year on year. Commenting on the production results for 2006, Mr. Askar Balzhanov, ChiefExecutive Officer of the Company said: "We are satisfied with the productionperformance in the year 2006. Incremental oil production has been achievedprimarily due to drilling of new wells, implementation of new methods of oilrecovery and reduction of idle well stock". The Company has also announced changes to one of its subsoil use contracts.According to the amended contract for the Uzen and Karamandybas fields, theCompany will be contributing up to 900 million Tenge per year to socialinfrastructure programmes in the Mangistau region. Previously, suchcontributions were made outside the framework of the contract on the basis ofseparate agreements with the local authorities. The amended contract has alsointroduced changes to and clarifications of a number of aspects of the contract,including the royalties, excess profit tax (EPT) and certain other taxes payablein respect of it. In particular, the royalty rate has been increased from 3% to3.5%, the application of EPT has been clarified and the maximum rate of EPTpayable under the contract has been reduced and brought into line with thatapplicable to most of the other contracts held by the Company. The modified EPTrates will be applied retrospectively from the inception of the subsoilagreements. For additional information please contact: KMG EP, Public Relations (+7 317 2 977 908, +7 3172 977 924)Ms. Lyazzat KokkozovaE-mail: [email protected] KMG EP, Investor Relations (+7 3172 975433)Mr. Alexander GladyshevE-mail: [email protected] Forward-looking statements This document includes statements that are, or may be deemed to be, ''forward-looking statements''. These forward-looking statements can be identifiedby the use of forward-looking terminology, including, but not limited to, theterms ''believes'', ''estimates'', ''anticipates'', ''expects'', ''intends'', ''may'', ''target'', ''will'', or ''should'' or, in each case, their negative orother variations or comparable terminology, or by discussions of strategy,plans, objectives, goals, future events or intentions. These forward-lookingstatements include all matters that are not historical facts. They include, butare not limited to, statements regarding the Company's intentions, beliefs andstatements of current expectations concerning, amongst other things, theCompany's results of operations, financial condition, liquidity, prospects,growth, potential acquisitions, strategies and as to the industries in which theCompany operates. By their nature, forward-looking statements involve risk anduncertainty because they relate to future events and circumstances that may ormay not occur. Forward-looking statements are not guarantees of futureperformance and the actual results of the Company's operations, financialcondition and liquidity and the development of the country and the industries inwhich the Company operates may differ materially from those described in, orsuggested by, the forward-looking statements contained in this document. TheCompany does not intend, and does not assume any obligation, to update or reviseany forward-looking statements or industry information set out in this document,whether as a result of new information, future events or otherwise. The Companydoes not make any representation, warranty or prediction that the resultsanticipated by such forward-looking statements will be achieved. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Kazmunaigaz Exploration