Operating results for the first nine months of 2016

JSC KazMunaiGas Exploration Production (“KMG EP” or “Company”) announces its operating results for the first nine months of 2016.

Production

Overall, KMG EP, including its stakes in Kazgermunai (“KGM”), CCEL (“Karazhanbasmunai”) and PetroKazakhstan Inc. (“PKI”), produced 9,134 thousand tonnes of crude oil (246 kbopd) for the nine months of 2016, which is a 1% decrease over the same period of 2015.

Ozenmunaigas JSC (“OMG”) produced 4,181 thousand tonnes (112kbopd), a 2% increase as compared to the same period of 2015. Embamunaigas JSC (“EMG”) produced 2,122 thousand tonnes (57kbopd), which is 1% more than it has produced in the same period of 2015. The total volume of oil OMG and EMG produced was 6,303 thousand tonnes (169kbopd), which is a 1% increase compared to production for the same period of 2015.

The Company’s share in production from CCEL, KGM, and PKI for the first nine months of 2016 amounted to 2,831 thousand tonnes of crude oil (77kbopd), which is 6% less than in the same period of 2015, mainly because of forecasted decline in production of oil by PKI.

Crude oil supplies and sales of petroleum products

In the first nine months of 2016, the Company’s combined sales from OMG and EMG were 6,283 thousand tonnes (166kbopd) including 3,743 thousand tonnes (99kbopd) of oil for export which is 60% from the total sales volume; and 2,540 thousand tonnes (67 kbopd) of oil to the domestic market. Additionally, 4 thousand tonnes of oil products were sold to the domestic market.

In the first nine months of 2016, out of 2,540 thousand tonnes (67 kbopd) of oil supplied by OMG and EMG to the domestic market, 1,981 thousand tonnes (52 kbopd) was supplied to Atyrau Refinery; and 559 thousand tonnes (15 kbopd) was supplied to Pavlodar Petrochemical Plant.

In quarter 1 of 2016, before the Company switched to independent oil refining scheme, domestic supplies were 830 ktonnes of oil. Between April and September 2016, 1,710 ktonnes of oil was[1] supplied to the domestic market for further refining.

As per the independent oil refining scheme, sales of petroleum products for the first nine months of 2016 was 1,519 ktonnes of petroleum products. For more details on petroleum product sales, please see Table No.2 below.

The Company’s share in the sales from CCEL, KGM, and PKI was 2,769 thousand tonnes of crude oil (75 kbopd), including 1,416 thousand tonnes (37 kbopd) supplied to export markets, or 51% of total sales volume. The domestic sales volume was 1,353 thousand tonnes (38 kbopd).

In the first nine months of 2016 there is a shift in use of production streams: as percentage of total production Export is up from 50% to 56% , domestic supply up from 38% to 43% and Russia Supply (Intergovernmental Agreement) down from 11% to nil%.

Table 1

Production and sales of oil for the nine months of 2016

 

ktonnes

 

kbopd

 

9M2015

9M2016

г/г, %

9M2015

9M2016

Oil production volumes

 

 

 

 

 

OMG

4 115

4 181

 

2%

 

111

112

EMG

2 104

2 122

 

1%

 

57

57

Total from  OMG and EMG

6 219

6 303

 

1%

 

168

169

KGM, 50%

1 127

1 100

 

-2%

 

32

31

CCEL, 50%

803

793

 

-1%

 

20

19

PKI, 33%

1 096

938

 

-14%

 

31

27

Total from joint ventures

3 026

2 831

 

-6%

 

83

77

Total oil production

9 245

9 134

 

-1%

 

251

246

Crude oil and oil products sales 

 

 

 

 

OMG andEMG

Uzen-Atyrau-Samara

2 018

2078

 

3%

 

53

55

CPC

1 285

1 665

 

30%

 

34

44

Export

3 303

3 743

 

13%

 

87

99

Atyrau Refinery

1 715

1 981

 

16%

 

45

52

Pavlodar Petrochemical Plant

140

559

 

299%

 

4

15

Sales of OMG oil products

43

4

 

-91%

 

1

0

Domestic market

1 898

2 544

 

34%

 

50

67

Russia

916

-

 

-100%

 

24

-

Total from OMG and EMG

6 117

6 287

 

3%

 

161

166

Export, % of total OMG&EMG production

54%

60%

 

 

 

 

 

Domestic market, % of total OMG&EMG production

31%

40%

 

 

 

 

 

Russia, % of total OMG&EMG production

15%

0%

 

 

 

 

 

 

 

 

 

 

 

 

 

KGM (50%)

Export

343

356

 

4%

 

10

10

Domestic market

775

742

 

-4%

 

22

21

Total fromKGM

1 118

1 098

 

-2%

 

32

31

CCEL (50%)

 

 

 

 

 

 

 

Export

562

747

 

33%

 

14

18

Domestic market

160

-

 

-100%

 

4

0

Russia

70

-

 

-100%

 

2

-

Total fromCCEL

792

747

 

6%

 

20

18

PKI (33%)

 

 

 

 

 

 

 

Export

380

313

 

-18%

 

11

9

Domestic market

685

611

 

-11%

 

19

17

Total fromPKI

1 065

924

 

-13%

 

30

26

Total from joint ventures

 

 

 

 

 

 

 

Export

1 285

1 416

 

10%

 

35

37

Domestic market

1 620

1 353

 

-16%

 

45

38

Russia

70

-

 

-100%

 

2

-

Total from joint ventures

2 975

2 769

 

-7%

 

82

75

Export, % of total JV production

43%

51%

 

 

 

 

 

Domestic market, % of total JV

production

55%

49%

 

 

 

 

 

Russia, % of  total JV

production

2%

0%

 

 

 

 

 

Export, % of total KMGEP production

50%

56%

 

Domestic market, % of total KMGEP production

38%

43%

 

Russia, % of  total KMGEP

production

11%

0%

 


Table 2

Production and sales of oil for the nine months of 2016

Petroleum products

Production

Sales

ktonnes

Atyrau

Refinery

Pavlodar

Petrochemical

Plant

Total

Atyrau

Refinery

Pavlodar

Petrochemical

Plant

Total

80 RON gasoline

             14,5

           14,8

           29,3

 

          14,5

           10,7

             25,2

92 RON gasoline

           114,7

          54,9

          169,6

 

          107,7

           49,3

           157,0

95 RON gasoline

             24,3

             7,1

            31,4

 

            14,3

             7,6

             21,9

Diesel fuel

           455,9

           98,9

          554,7

 

          453,8

           92,6

           546,4

Aviation fuel

               7,2

                 -

              7,2

 

              6,0

                 -

               6,0

Total light petroleum products

         616,6

         175,6

         792,2

 

         596,3

         160,2

         756,5

Vacuum gas oil

           232,9

                 -

          232,9

 

          232,9

                 -

           232,9

Fuel oil

           410,6

           39,3

         499,9

 

         407,9

           24,7

           432,6

Bitumen

                  -

           21,6

            21,6

 

                  -

           21,3

             21,3

Total dark petroleum products

         643,5

            60,9

         704,4

 

         640,8

            46,0

         686,8

Liquefied gas

               5,9

           14,6

            20,5

 

              5,9

           14,3

             20,2

Heating oil

             20,0

                 -

            20,0

 

            18,1

                 -

             18,1

Sulfur

               0,8

             1,5

              2,3

 

                  -

                 -

                  -

Petroleum coke

             34,8

           12,4

            47,2

 

            34,5

             2,0

             36,5

Benzene

               1,7

                 -

              1,7

 

              1,1

                 -

               1,1

Others

                  -

             6,7

              6,7

 

                  -

                 -

                  -

Other petroleum products

            63,2

           35,2

            98,4

 

            59,6

           16,3

            75,9

Losses

             77,7

           31,8

          109,5

 

                  -

                 -

                  -

Total

      1 401,0

         303,5

      1 704,5

 

      1 296,7

         222,5

      1 519,2


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.



[1] Prior to April 2016, the Company had been supplying a portion of crude oil to KazMunaiGas Refining & Marketing (“KMG RM”) as part of its domestic supply obligations. Starting April 2016, the Company has been refining crude oil at Atyrau Refinery and Pavlodar Petrochemical Plant, and selling crude oil through KMG RM that has since been acting as a sales agent.

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