29th Dec 2008 07:00
PRESS-RELEASE
KMG EP Board of Directors approved the 2009 budget accounting for lower oil prices
Astana, 25 December 2008. The Board of Directors of JSC KazMunaiGas Exploration Production ("KMG EP", "The Company") has approved the 2009 budget, based upon an assumed average Brent oil price for the year of $40 per barrel.
The Company's total capital expenditure for 2009 is expected to amount to 36.5bn Tenge. ($295,5 million). This reduction in capex compared to 2008 is considered prudent by the Board in the current global economic situation.
Production on the Company's main assets (Ozenmunaigas and Embamunaigas) is scheduled to reach 9,141million tonnes (184.32kbod), 3.8% lower than the previously forecast level. This is a result of lower oil prices making the maintenance of production levels at some wells uneconomical.
The approved budget for 2009 allows KMG EP to maintain a satisfactory level of operations whilst also reflecting an appropriate strategy for the current economic climate.
Notes to Editors
KMG EP is one of top three oil producers in Kazakhstan with over 10.6 mmt (215 kbopd) of crude oil production in 2007 including shares in 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 the Kazakh Stock Exchange and the GDRs are listed on the London Stock Exchange. The Company raised over US$2bn as a result of its IPO in September of 2006. The Company's Corporate Governance rating has been increased by Standard & Poor's from 5+ to 6, and its credit rating is confirmed at BB+.
For additional information please contact: KMG EP Public Relations (+7 7172 977600, +7 7172 977908) Mr Mikhail Dorofeyev e-mail: [email protected] Investor Relations (+7 7172 975433)
Ms Asel Kalieva
e-mail: [email protected] Pelham PR (+44 203 178 44 18) Mrs Elena Dobson 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.
Related Shares:
Kazmunaigaz Exploration