OREANDA-NEWS.  JSC KazMunaiGas Exploration Production ("KMG EP" or the "Company") held its regular Board of Directors (“the Board”) meeting on March 30, 2015. During the meeting the Board approved the revision of the 2015 budget and approved the meeting agenda for the Annual General Meeting of Shareholders (“AGM”) set for 19 May 2015.

I. Revised 2015 budget

The Board of Directors approved the revision of the 2015 budget based on an average Brent oil price of US\$50 per barrel.

Production

Planned production in 2015 is expected to be 5.4 million tonnes (108 kbopd) from JSC OzenMunaiGas (OMG) and 2.8 million tonnes (56 kbopd) from JSC EmbaMunaiGas (EMG). The total planned production volume in 2015 from OMG and EMG is expected to be 8.2 million tonnes (164 kbopd), which is 69 thousand tonnes or 1% less than the 2015 planned production volumes approved in December 2014.

The Company’s share in the planned production of Kazgermunai (KGM), CCEL (CCEL) and PetroKazakhstan Inc. (PKI) in 2015 remained unchanged compared to the earlier approved budget and is expected to be 1.5 million tonnes (32 kbopd), 1.1 million tonnes (19 kbopd) and 1.4 million tonnes (31 kbopd), respectively. 

Domestic supply

Expected volumes of oil supply to the domestic market in 2015 were revised downwards. It is expected that the annual volume of oil supply to the domestic market from OMG and EMG in 2015 will be 2.3 million tonnes (47 kbopd), of which 1.9 million tonnes (38 kbopd) will be supplied from OMG to the Atyrau refinery and 0.4 million tonnes (9 kbopd) from EMG to the Pavlodar refinery. The lower volumes of oil supply to the domestic market by 0.7 million tonnes (13 kbopd) from OMG and EMG compared to the previous plan is due to the fact that the full reverse of the Kenkiyak – Atyrau oil pipeline is not yet completed. An additional 100 thousand tonnes of oil will be processed at the Atyrau refinery for the Company’s own use.

The Company’s share in the planned volume of oil supply to the domestic market in 2015 from KGM, CCEL and PKI is 1.9 million tonnes (39 kbopd) or 48% of total sales from these companies.  KGM and PKI will supply oil to the Pavlodar and Shymkent refineries and CCEL will supply the Aktau bitumen plant.