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JSC KazMunaiGas Exploration Production (KMG EP or the Company) produces crude oil, natural and associated gas from its hydrocarbon reserves on-shore in Kazakhstan. The Company also has an active exploration programme to maintain and grow its reserve base. JSC KazMunaiGas Exploration Production is a subsidiary of the national company for oil and gas operations in the Republic of Kazakhstan, JSC National Company KazMunaiGas (NC KMG). It was formed in March 2004 through the merger of JSC UzenMunaiGas (UMG) and JSC EmbaMunaiGas (EMG). Independent experts believe that the company’s assets contain proved plus probable oil reserves of approximately 234 million tonnes (1 725 million barrels) as at December 31, 2009. KMG EP has a portfolio of 41 oil and gas fields located onshore in western Kazakhstan. The core production assets of the Company are its two production divisions: Uzenmunaigas (UMG) and Embamunaigas (EMG), with combined production of 181 kbopd in 2009. Uzen fileld is the biggest in the existing portfolio. Of the two divisions UMG accounted for more than 75% of reserves and 70% of 2009 production. One of the main objectives for KMG EP is to ensure the growth of oil reserves. This growth is achievable through the acquisition of assets, exploration activity and the optimization of core fields. With regard to UMG and EMG, the Company’s strategy is to maintain existing production levels in the forthcoming years by drilling and completing new wells, performing well work-overs and enhancing oil recovery by implementing new technologies. The Company also intends to focus on improving its efficiency by continuing to optimize operating costs and rationalizing its operations across the board. This will be achieved through divesting non-core and ancillary businesses and by bringing the Company’s operations in line with international standards. In order to continue to build on the significant successes of previous years, it is important to maintain progress on the programme for the sustained development of the Company’s core assets. This programme has been successfully reviewed and progressed at the Uzen field. |
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