OREANDA-NEWS. August 26, 2011. KazMunaiGas Exploration Production announced today (26 Aug) that the daily production decline at Uzenmunaigas (UMG, a KMG EP subsidiary) has been reversed. The company recently started firing workers involved in the illegal strike action and filling vacancies with new workers. The production loss caused by the strike and power cuts has exceeded 600,000 tonnes YtD. The company estimates the full-year negative impact at 800,000 tonnes, the same figure it provided one month ago (27 July).

Bottom line

The news is marginally positive in our view as the market had been worried about the situation at UMG after a number of negative reports from the field.