KMG EP Operating results for the first quarter of 2018

Source Press Release
Company KazMunaiGas Exploration ProductionPetroKazakhstan 
Tags Strategy - Other, Strategy - Chemicals, Strategy - Downstream, Upstream Activities, Strategy - Upstream, Strategy - Corporate, Financial & Operating Data
Date April 25, 2018

JSC KazMunaiGas Exploration Production (“KMG EP” or “Company”) announces its operating results for the first quarter of 2018.

Production

KMG EP, including its stakes in Kazgermunai (“KGM”), CCEL (“Karazhanbasmunai”) and PetroKazakhstan Inc. (“PKI”), produced 2,898 thousand tonnes of crude oil (238 kbopd) for the first quarter of 2018, at the same level compared to the same period of 2017.

In the first quarter of 2018, Ozenmunaigas JSC (“OMG”) produced 1,350 thousand tonnes (110 kbopd), a 1% increase as compared to the same period of 2017. Embamunaigas JSC (“EMG”) produced 695 thousand tonnes (57 kbopd), which is 1% more than in the same period of 2017. The total oil production volume of OMG and EMG was amounted to 2,046 thousand tonnes (167 kbopd), a 1% increase compared to the same period of 2017.

The Company’s share in production from KGM, CCEL, and PKI for the first quarter of 2018 amounted to 852 thousand tonnes (71 kbopd) of crude oil, which is 3% less than in the same period of 2017. This was mainly driven by the natural decline in oil production at PKI and KGM.

Crude oil supplies and sales of oil products

In the first quarter of 2018, the Company’s combined sales from OMG and EMG were 2,002 thousand tonnes (161 kbopd). Of these crude oil sales, 1,265 thousand tonnes (102 kbopd) were exported and 737 thousand tonnes (59 kbopd) were sold to the domestic market, which is equivalent to 37% of the total sales volume. The share of domestic supplies in the same period of 2017 was 34%.

Out of 737 thousand tonnes (59 kbopd) of crude oil supplied by OMG and EMG to the domestic market in the first quarter of 2018, 535 thousand tonnes (43 kbopd) were supplied to Atyrau Refinery and 202 thousand tonnes (16 kbopd) were supplied to Pavlodar Refinery.

Under the independent oil processing scheme, sales of oil products for the first quarter of 2018 were 669 thousand tonnes, a 5% increase on the same period of 2017. For more details about volumes of sales of oil products please see Table No.2.

The Company’s share in the sales from KGM, CCEL, and PKI was 834 thousand tonnes (69 kbopd) of crude oil. Of this, 318 thousand tonnes (24 kbopd) were exported and 515 thousand tonnes (44 kbopd) supplied to the domestic market, which is equivalent to 62% of the total sales volume. In the same period of 2017, KGM, CCEL and PKI supplied 57% of the total sales volume to the domestic market.

Total 2P reserves of liquid hydrocarbons

The Company’s share in Proved and Probable (2P) reserves of KGM (50% stake), CCEL (50% stake) and PKI (33% stake) as at the end of 2017 was 36 million tonnes (256 million barrels) or 20% of the total consolidated reserves of the Company. As at the end of 2016 the Company’s share in Proved and Probable (2P) reserves of KGM (50% stake), CCEL (50% stake) and PKI (33% stake) was 37 million tonnes (266 million barrels) or 21% of the total consolidated reserves of the Company. The reserves assessment of 2P reserves of joint ventures were made separately by independent auditors[1].

As announced, according to the report by DeGolyer and MacNaughton, 2P reserves of liquid hydrocarbons at OMG, EMG, and Ural Oil and Gas (KMG EP’s share - 50%) fields as at 31 December 2017 excluding the Company’s stakes in KGM, CCEL and PKI were 145 million tonnes (1,065 million barrels).

Thus, the total 2P reserves of liquid hydrocarbons of KMG EP including its stakes in KGM, CCEL, and PKI as at 31 December 2017 amounted to 180 million tonnes (1,321 million barrels).

Table No.1. Production and sales of oil for the first quarter of 2018

  thousand tonnes    kbopd 
  3М2017  3М2018  y/y, %  3М2017  3М2018 
Oil production volumes           
OMG               1 335               1 350  1%  109                 110 
EMG                  691                  695  1%  57                   57 
Total from OMG and EMG              2 026              2 046  1%  166                                   167 
KGM, 50%                  346                  337  -3%  30                   29 
CCEL, 50%                  261                  265  2%  19                   20 
PKI, 33%                  271                  250  -8%  23                                 22 
Total from joint ventures                 878                 852  -3%  72                   71 
Total oil production              2 904              2 898  -0,2%  238                                 238 
Crude oil sales         
OMG and EMG           
Uzen-Atyrau-Samara                  719                  963  34%  58                   77 
CPC                  565                  302  -47%  45                   24 
Export              1 284              1 265  -1%  103                 102 
Atyrau Refinery                  520                  535  3%  42                   43 
Pavlodar Refinery                  135                  202  50%  11                                               16 
Domestic market  655   737   13%  53                   59 
Total from OMG and EMG  1 939                2 002                3%  156                 161 
Export, %  66%  63%       
Domestic market, %  34%  37%       
KGM (50%)           
Export  66  20  -70% 
Domestic market  279  315  13%  24  27 
Total from KGM  345  335  -3%  30  29 
CCEL (50%)           
Export  230  251  9%  17  19 
Domestic market[2]  20  100% 
Total from CCEL   250  251  -1%  19  19 
PKI (33%)           
Export  79  47  -41% 
Domestic market  194  200  3%  17  17 
Total from PKI  273  247  -10%  24  21 
Total from joint ventures           
Export  375  318  -15%  30  24 
Domestic market  493  515  4%  42  44 
Total from joint ventures  868  834  -4%  72  69 
Export, %  43%  38%       
Domestic market, %  57%  62%       

Table No. 2. Production and sales of oil products for the first quarter of 2018

Oil products  Production    Sales 
thousand tonnes  Atyrau Refinery  Pavlodar Refinery  Total    Atyrau Refinery  Pavlodar Refinery  Total 
92 RON gasoline  65,25   51,73   116,98     56,61   53,26   109,87  
95 RON gasoline  6,96   2,94   9,90     4,57   3,20   7,77  
98 RON gasoline  0,50  0,50    0,58  0,58 
Diesel fuel  120,30   64,41   184,72     119,50   63,92   183,42  
Aviation fuel  1,84   -   1,84     1,46   -   1,46 
Total light oil products  194,36   119,58   313,94     182,13   120,97   303,10  
Vacuum gas oil  93,82   -   93,82     93,24   -   93,24  
Mazut  172,81   34,20   207,01     172,56   29,95   202,51  
Bitum  -   1,72  1,72     -   1,72  1,72  
Total dark oil products  266,63   35,92   302,55     265,80   31,67   297,47  
Liquefied gas  6,40  12,00   18,40     6,40   12,63   19,03  
Furnace oil  15,66   -   15,66     16,24  10,54   26,78  
Sulfur  0,27   1,49   1,75     0,44   1,38   1,82  
Coke  14,08   8,03   22,11     14,85   5,02   19,87  
Benzol  1,24   -   1,24     1,36   -   1,36  
Others  -   1,10   1,10     -  
Total other oil products  37,65   22,62   60,27     39,28   29,58   68,86  
Losses  36,37   22,99   59,35     -   -  
Total  535,00   201,11  736,11     487,22  182,21   669,43  
Source: EvaluateEnergy® ©2022 EvaluateEnergy Ltd