Gulf Oil and Gas accountACCOUNT

KMG EP Approves 2017 Budget & 2017-2021 Business Plan

Source: www.gulfoilandgas.com 12/21/2016, Location: Asia

Share |
JSC KazMunaiGas Exploration Production (KMG EP) announces that its Board of Directors (“the Board”) has approved the Company’s 2017 budget and 2017-2021 business plan. The budget for 2017 assumes a Brent price of US$45 per barrel and an exchange rate of 360 Tenge per US dollar.

The Company expects free cash flows to be positive in the 2017-2021 period, in contrast to the business plan for 2016-2020 years, as a result of the independent crude oil processing scheme and the reduced volume of domestic oil supplies, as well as changed assumptions on the price of Brent and the exchange rate of Tenge per US dollar, partially offset by increased capital expenditures.

Production
Planned production in 2017 is expected to be 5.8 million tonnes (117 kbopd) from JCS OzenMunaiGas (OMG) and 2.8 million tonnes (57 kbpod) from JSC EmbaMunaiGas (EMG). Thus, the total planned production volume in 2017 from OMG and EMG is 8.7 million tonnes (175 kbopd), a 2% increase on expected production in 2016 due to the comprehensive measures with existing well stock and additional geological and technical measures.

The Company’s share in the planned production of Kazgermunai (KGM), CCEL and PetroKazakhstan Inc. (PKI) in 2017 is 3.5 million tonnes (72 kbopd), which is 7% less than expected production in 2016 mainly due to an anticipated natural decline of production at the PKI and KGM.

The Company expects that by 2021 the annual volume of oil production at OMG and EMG will increase to 6.2 million tonnes and 3.1 million tonnes, respectively, 10% higher than expected production in 2016 due to the comprehensive measures with existing well stock and additional geological and technical measures. Meanwhile, production of KGM, CCEL and PKI is expected to be 3.0 million tonnes by 2021, which is 20% less compared to the expected production in 2016, mainly due to a natural decline of production at PKI by 56%.

Overall, the total combined production of the Company, including its stakes in KGM, CCEL and PKI, in 2021 is expected to be 1% higher than expected production in 2016.

Financials and Investment News in Kazakhstan >>

United States >>  6/21/2017 - Cook Inlet Lease Sale 244 -- the first lease sale held in Alaska’s federal waters since 2008 -- today garnered $3,034,815 in high bids for 14 tracts c...
Canada >>  6/20/2017 - Cenovus Energy Inc. put forward a five-year plan that the company expects will generate 14% annualized free funds flow growth through 2021 at a West T...

Ireland >>  6/20/2017 - Providence Resources P.l.c., the Irish based Oil and Gas Exploration Company, provides a commercial update on the Exclusive Option (the “Option”) ente...
Austria >>  6/15/2017 - Demand for OPEC crude in 2017 was revised up by 0.1 mb/d from the previous month. This upward adjustment was mainly due to the downward revision in no...

United Arab Emirates >>  6/15/2017 - Gulf Energy Maritime (GEM), has signed an AED275 million ($75 million) with Dubai Islamic Bank (DIB). The agreement marks the first time GEM has raise...
United Kingdom >>  6/15/2017 - Today shareholders of Wood Group and Amec Foster Wheeler overwhelmingly approved Wood Group’s recommended all-share offer for Amec Foster Wheeler. The...

Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 


Kazakhstan Oil & Gas 1 >>  2 | 3 | 4 | 5 | 6 | 7 |

More News

 

Oil & Gas Companies in Kazakhstan >>


Related Links

Gulf Oil and Gas
Copyright © Universal Solutions All rights reserved. - Privacy Policy.