/KASE, 08.04.08/ -KazMunaiGas Exploration Production JSC (Astana),
shares of which are traded in the Kazakhstan Stock Exchange (KASE) category
"A" official list, dissemination today the press release, which informs on the
following.
Quotation start
As reported by newswires, the Government of Kazakhstan has made a decision
today to introduce in the near future a crude oil export duty in Kazakhstan at the
rate of USD109.91 per tonne (approximately USD15 per barrel) in the near future.
KazMunaiGas Exploration Production JSC ("KMG EP" or the "Company",) has not
yet received detailed official information regarding the timing and application of
the export duty. It is expected that the level of the export duty will depend on
the world crude oil prices.
Applicability of the export duty to the Company's individual contracts is expected
to be clarified in the near future. Based on the currently available information
the export duty would be applicable to some or all of the exported crude oil out
of that produced by the Company's production branches Uzenmunaigas and
Embamunaigas. The total exports from these two entities amounted to 7.3 million
tonnes (147 kbopd) in 2007. Kazgermunai and CCEL ("Karazhanbasmunai"),
each 50%-owned by KMG EP, have explicit customs stability clauses in their
production contracts and are therefore expected to be exempt from the new
export duty at this stage.
Should the new export duty of USD109.91 per tonne be applied to the entire
export volumes of Uzenmunaigas and Embamunaigas, the estimated annualized
financial impact, before income taxes, would be approximately USD800 million.
The export duty is deductible for the purposes of the corporate income tax and
excess profit tax.
In light of an increase in the tax burden KMG EP will be undertaking a review of
its production, financial and investment plans. In particular, this review will
focus on the capital investment budget, projected crude oil production levels,
estimates of the recoverable reserves as well as plans for new acquisitions.
Commenting on the subject, the Company's CEO Mr Askar Balzhanov said: "As a
responsible corporate taxpayer, we shall comply with this governmental decision.
With the increased fiscal burden and diminished investment capacity we will
continue to focus on the most attractive growth opportunities supported by tight
cost control".
Contact information:
KMG EP Public Relations (+7 7172 977908, +7 7172 977924)
Ms Zukhra Sultanova
Email: pr@kmgep.kz
KMG EP Investor Relations (+7 7172 975433)
Mr Alexander Gladyshev
Email: ir@kmgep.kz
WMC Communications Ltd / Pelham PR (+44 203 178 44 18)
Mrs Elena Dobson
Email: Elena.dobson@wmccommunications.com
Quotation end
The full version of KazMunaiGas Exploration Production JSC press release is
available at the KASE website at:
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http://www.kase.kz/emitters/scan/rdgz/rdgz_reliz_080408k.pdf - in Kazakh;
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http://www.kase.kz/emitters/scan/rdgz/rdgz_reliz_080408.pdf - in Russian;
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http://www.kase.kz/emitters/scan/rdgz/rdgz_reliz_080408e.pdf - in English.
[2008-04-08]