12th Jul 2013 07:00
PRESS RELEASE
KMG EP held an Extraordinary General Meeting of shareholders and a meeting of the Board of Directors
Astana, 12 July 2013. JSC KazMunaiGas Exploration Production ("KMG EP" or the "Company") held an Extraordinary General Meeting of shareholders on July 09, 2013. At the meeting a member of the Company's Board of Directors ("Board"), Lyazzat Kiinov, has resigned and Daniyar Berlibayev, First Deputy Chairman of the Managing Board for Corporate Development of National Company KazMunaiGas ("NC KMG") was appointed a new member of the Company's Board of Directors for the whole term.
On July 10, 2013 the Board elected Daniyar Berlibayev as the Chairman of the Board of Directors of KMG EP.
KMG EP's Board of Directors approved the revised budget for 2013. According to the revised budget capital expenditure for 2013 is expected to be 168bn tenge (US$1,121m)[1], which is 17bn tenge (US$114m) less compared to 185 bn tenge (US$1,235m) approved in December 2012.
The decrease in capital expenditure is related among other factors to lower exploration drilling by 11 bn tenge (US$74m). The decline in exploration drilling expenditures is due to a change of the accounting methodology of LLP "Karpovskii Severnyi"[2] (7bn tenge or US$49m) and to revision of schedule and targets of the drilling programmeby 4bn tenge (US$25m).
Also the plan on implementation of the modernization program has been revised downwards by 7 bn tenge (US$47m).The decline in modernization program expenditures is largely due to the postponement of construction of some projects for later years.
According to the revised budget the development drilling expenses will be higher by 1bn tenge (US$8m) due to the drilling of additional 5 directional wells and 6 development wells at Embamunaigas JSC.
These measures are aimed to ensure sustainable use of funds based on the current economic and operational indicators.
NOTES TO EDITORS
KMG EP is among the top three Kazakh oil and gas producers. Overall production in 2012 was 12.2mt (an average of 247kbopd) of crude oil, including the Company's share in Kazgermunai, CCEL and PKI. The total volume of proved and probable reserves, as at the end of 2011 was 226mt (1.7bn bbl), including shares in the associates of about 2.1bn barrels. The Company's shares are listed on the Kazakhstan Stock Exchange and its GDRs are listed on The London Stock Exchange. The Company raised over US$2bn in its IPO in September 2006. International rating agency Standard & Poor's (S&P) confirmed KMG EP's "BBB-" corporate credit rating in December 2011.
Daniyar Berlibayev worked as Director General of Intergaz Central Asia JSC in 2005-2007, by secondary employment as second in command of Director General of KazTransGaz JSC as well. From 2007 to 2009 held a post of managing director on gas projects of KazMunaiGaz JSC NC. In 2009-2011 worked as Director General of KazMunaiGaz-PM JSC, then Director General of KazTransGaz JSC. Held a position of managing director for gas projects of JSC NC KazMunaiGaz. At present he is the First Deputy Chairman of the Managing Board for Corporate Development of National Company KazMunaiGas
For further details please contact us at:
«KMG EP». Investor Relations (+7 7172 97 5433)
Asel Kaliyeva
e-mail: [email protected]
«KMG EP». Public Relations (+7 7172 97 7915)
Zhanna Oyshybaeva
e-mail: [email protected]
Pelham Bell Pottinger (+44 (0)207 861 3147)
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.
[1] Amounts shown in US dollars ("USD$" or "$") have been translated solely for the convenience of the reader at the average rate of 150 tenge/US dollar.
[2] Accounted for using equity method as 49% of share was sold in October 2012. In original 2013 budget was accounted for as 100% subsidiary.
Related Shares:
Kazmunaigaz Exploration