28th Jul 2016 07:03
PRESS RELEASE
KMG EP Announces Operating Results for 1H2016
Astana, 28 July 2016. JSC KazMunaiGas Exploration Production ("KMG EP" or "Company") announces its operating results for the first six months of 2016.
Production
Total crude oil production for KMG EP, including its stakes in Kazgermunai ("KGM"), CCEL ("Karazhanbasmunai") and PetroKazakhstan Inc. ("PKI"), was 6,078 thousand tonnes of crude oil (246kbopd) for the first six months of 2016, which is a 0.7% decrease over the same period of 2015.
Ozenmunaigas JSC ("OMG") produced 2,779 thousand tonnes (112kbopd), 2% higher than the same period in 2015. Embamunaigas JSC ("EMG") produced 1,407 thousand tonnes (57kbopd), also 2% higher than the same period in 2015. Therefore, the total volume of oil produced by OMG and EMG was 4,186 thousand tonnes (169kbopd), which is a 2% increase on the same period last year.
The Company's share in production from KGM, CCEL, and PKI for the first six months of 2016 amounted to 1,892 thousand tonnes of crude oil (77kbopd), which is 6% less than in the same period of 2015, mostly as a result of the reduction of production at PKI.
Crude oil sales
In the first six months of 2016, the Company's combined sales from OMG and EMG were 4,168 thousand tonnes (166kbopd). This includes 2,464 thousand tonnes (98kbopd) of crude oil for export or 59% of the total sales volume, and 1,704 thousand tonnes (68 kbopd) of crude oil to the domestic market. In addition, 3 thousand tonnes of oil products were sold to the domestic market; this material has not been included in the new independent crude oil processing scheme as it was treated before the scheme was established in April 2016.
Of the 1,704 thousand tonnes (68 kbopd) of oil supplied by OMG and EMG to the domestic market, 1,280 thousand tonnes (51 kbopd) went to the Atyrau Refinery (ANPZ) and 424 thousand tonnes (17kbopd) went to the Pavlodar Petrochemical Plant (PNHZ).
The Company's share in the sales from KGM, CCEL, and PKI was 1,875 thousand tonnes of crude oil (77kbopd), including 922 thousand tonnes (36kbopd) supplied to export markets, which is 49% of the total sales volume. The domestic sales volume was 953 thousand tonnes (40 kbopd).
Oil products sales
As previously reported, the Company switched to an independent oil processing scheme in April 2016. As per the scheme KMG EP supplies oil to ANPZ and PNHZ for refining, with further sales of oil products through KazMunaiGas Refining & Marketing (KMG RM) under agency contract.
In the second quarter of 2016, KMG EP sold 761.2 thousand tonnes of oil products as per the scheme. A detailed breakdown of oil products sales is presented in Table 2 below.
Table 1
Production and sales of oil in the first six months of 2016
thousand tonnes | variance | thousand barrels per day | |||||
1H2015 | 1H2016 | % | 1H2015 | 1H2016 | |||
Production | |||||||
OMG | 2 722 | 2 779 | 2% | 111 | 112 | ||
EMG | 1 385 | 1 407 | 2% | 56 | 57 | ||
Total OMG and EMG | 4 107 | 4 186 | 2% | 167 | 169 | ||
KGM, 50% | 752 | 730 | -3% | 32 | 31 | ||
CCEL, 50% | 531 | 526 | -1% | 20 | 19 | ||
PKI, 33% | 732 | 636 | -13% | 31 | 27 | ||
Total joint ventures | 2 015 | 1 892 | -6% | 83 | 77 | ||
Total oil production | 6 122 | 6 078 | -0,7% | 250 | 246 | ||
Oil sales | |||||||
OMG and EMG | |||||||
Uzen-Atyrau-Samara | 1 458 | 1 359 | -7% | 58 | 54 | ||
CPC | 907 | 1 105 | 22% | 36 | 44 | ||
Export | 2 365 | 2 464 | 4% | 94 | 98 | ||
ANPZ | 1 101 | 1 280 | 16% | 44 | 51 | ||
PNHZ | 96 | 424 | 341% | 4 | 17 | ||
Processing for internal needs | 34 | 4 | -88% | 1 | 0 | ||
Domestic market | 1 231 | 1 708 | 39% | 49 | 68 | ||
Russia | 566 | - | -100% | 23 | - | ||
Total OMG and EMG | 4 162 | 4 172 | 0% | 166 | 166 | ||
Export, % | 57% | 59% | 4% | 57% | 59% | ||
Domestic, % | 30% | 41% | 37% | 30% | 41% | ||
Russia, % | 14% | 0% | -100% | 14% | 0% | ||
KGM (50%) | |||||||
Export | 268 | 197 | -26% | 11 | 8 | ||
Domestic market | 478 | 529 | 11% | 20 | 22 | ||
Total KGM | 745 | 726 | -3% | 32 | 31 | ||
CCEL (50%) | |||||||
Export | 344 | 524 | 52% | 13 | 19 | ||
Domestic market | 111 | 0 | -100% | 4 | 0 | ||
Russia | 70 | 0 | -100% | 3 | 0 | ||
Всего CCEL | 525 | 524 | -0,2% | 19 | 19 | ||
PKI (33%) | |||||||
Export | 277 | 201 | -27% | 12 | 9 | ||
Domestic market | 430 | 424 | -1% | 18 | 18 | ||
Total PKI | 707 | 625 | -12% | 30 | 27 | ||
Total joint ventures | |||||||
Export | 889 | 922 | 4% | 36 | 36 | ||
Domestic market | 1 019 | 953 | -5% | 43 | 40 | ||
Russia | 70 | 0 | -100% | 3 | 0 | ||
Total joint ventures | 1 977 | 1 875 | -5% | 81 | 77 | ||
Export, % | 45% | 49% | 9% | 44% | 47% | ||
Domestic, % | 52% | 51% | -2% | 53% | 53% | ||
Russia, % | 4% | 0% | -100% | 3% | 0% | ||
Table 2
Production and sales of oil products in the first six months of 2016
Oil products | Production | Sales | |||||
thousand tonnes | ANPZ | PNHZ | Total | ANPZ | PNHZ | Total | |
Petrol Normal AI-80 | 6,1 | 7,5 | 13,6 | 6,0 | 6,7 | 12,7 | |
Petrol Regular AI-92 | 62,3 | 37,3 | 99,6 | 59,0 | 29,9 | 89,0 | |
Petrol Premium AI-95 | 13,8 | 1,7 | 15,5 | 7,2 | 1,8 | 9,0 | |
Diesel | 226,6 | 58,2 | 284,8 | 221,6 | 53,9 | 275,5 | |
Jet fuel | 3,3 | 0 | 3,3 | 3,0 | 0 | 3,0 | |
Total light oil products | 312,0 | 104,6 | 416,6 | 296,8 | 92,3 | 389,2 | |
Vacuum gasoil | 116,7 | 0 | 116,7 | 115,5 | 0 | 115,5 | |
Mazut | 194,7 | 20,1 | 214,8 | 189,0 | 17,4 | 206,4 | |
Bitum | 0 | 7,2 | 7,2 | - | 7,0 | 7,0 | |
Total dark oil products | 311,4 | 27,3 | 338,7 | 304,6 | 24,4 | 329,0 | |
Liquid gas | 3,5 | 9,4 | 12,9 | 3,5 | 9,3 | 12,8 | |
Furnace fuel | 12,8 | 0 | 12,8 | 14,3 | 0 | 14,3 | |
Sulfur | 0,5 | 1,0 | 1,5 | 0 | 0 | 0 | |
Coke calcined | 18,8 | 8,6 | 27,4 | 15,9 | 0 | 15,9 | |
Other | 0 | 1 | 1 | 0 | 0 | 0 | |
Total other oil products | 35,6 | 20 | 55,6 | 33,7 | 9,3 | 43 | |
Losses | 41,1 | 17,9 | 59,0 | na | na | 0 | |
Total | 700,0 | 169,9 | 869,9 | 635,1 | 126 | 761,2 | |
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.
For further details please contact us at:
KMG EP. Investor Relations (+7 7172 97 5433)
Saken Shoshanov
e-mail: [email protected]
KMG EP. Public Relations (+7 7172 97 78 87)
Bakdaulet Tolegen
e-mail: [email protected]
Brunswick Group (+44 207 404 5959)
Carole Cable
e-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 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.
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