Press Releases

05 January, 2015

Withdrawal of proposed offer by National Company KazMunaiGaz to acquire KMG EP

Astana, 5 January 2015. The Independent Directors of JSC KazMunaiGas Exploration Production (“KMG EP” or “the Company”) note the announcement by National Company KazMunaiGaz (“KMG NC”) that it is withdrawing its proposal to acquire the shares in KMG EP that it does not already own at a price of US$18.50 per GDR.

Since the announcement on 25th July, 2014 of KMG NC’s preliminary approach, the Independent Directors have sought to engage with KMG NC and its advisers to achieve a satisfactory transaction.

In December the Independent Directors of KMG EP had indicated to KMG NC that they would recommend an offer of US$ 18.50 per GDR. Given the period of time that had elapsed the Independent Directors were however discussing with KMG NC the payment and level of a dividend in respect of the year ended 31st December 2014.

Notes to editors
KMG EP is among the top three Kazakh oil and gas producers. The overall production in 2013 was 12.4 million tonnes (an average of 251 kbopd) of crude oil, including the Company’s share in Kazgermunai, CCEL and PKI. The Company’s total consolidated volume of proved and probable reserves including shares in the associates, as at the end of 2013 was 200 million tonnes (1.5 bn bbl), out of which 148.8 million tonnes (1.1 bn bbl) relates to Ozenmunaigas, Embamunaigas, and UOG (Rozhkovskoye field, Fyodorovskiy block). 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 in its IPO in September 2006.

For further details please contact us at:
KMG EP. Investor Relations (+7 7172 97 5433)
Asel Kaliyeva

KMG EP. Public Relations (+7 7172 97 79 08)
Elena Pak

Brunswick Group (+44 207 404 5959)
Andrew Mitchell

Forward-looking statements
This document includes statements that are, or may be deemed to be, ‘‘forward-looking statements’’. These forward-looking statements can be identified by the use of forward-looking terminology including, but not limited to, the terms ‘‘believes’’, ‘‘estimates’’, ‘‘anticipates’’, ‘‘expects’’, ‘‘intends’’, ‘‘may’’, ‘‘target’’, ‘‘will’’, or ‘‘should’’ or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. These forward-looking statements include all matters that are not historical facts. They include, but are not limited to, statements regarding the Company’s intentions, beliefs and statements of current expectations concerning, amongst other things, the Company’s results of operations, financial condition, liquidity, prospects, growth, potential acquisitions, strategies and as to the industries in which the Company operates. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances that may or may not occur. Forward-looking statements are not guarantees of future performance and the actual results of the Company’s operations, financial condition and liquidity and the development of the country and the industries in which the Company operates may differ materially from those described in, or suggested by, the forward-looking statements contained in this document. The Company does not intend, and does not assume any obligation, to update or revise any forward-looking statements or industry information set out in this document, whether as a result of new information, future events or otherwise. The Company does not make any representation, warranty or prediction that the results anticipated by such forward-looking statements will be achieved.

Withdrawal of proposed offer by National Company KazMunaiGaz to acquire KMG EP (143 Kb) Download