NC KazMunaiGaz CJSC announced results of financial and economic activity for the first half-year 2002

/IRBIS, August 08, 02/ - Today NC KazMunaiGaz CJSC (Astana) distributed press release, where main results of financial and economic activity for the first half-year of 2002 are informed. It is informed that oil extraction in the first half-year reached 3,593 th. tons of oil. This is 13.5% greater than the level of the previous year. In addition to the budget 254.7 th. tons of oil were received. Uzenmunaigaz OJSC extracted 2,358 th. tons of oil (108% of plan), volume of additional extraction totaled 191 th. tons. Kazakhoil-Emba OJSC got 1,235 th. tons of oil extracted (102.7% of plan), additional extraction - 63.7 th. tons. Gas extraction in the first half-year amounted to 656.5m cubic meters with plan of 636.5m m3. In the company's opinion, these indicators were reached owing to investments to production constructing, boring of exploiting wells, applying of new methods of oil recovery growth, renewal of special machinery yard, chemicalixation of oil extracting processes. In the reported period 81 new wells for boring, 129 oil wells out of inactiveness were put into operation; also 42 wells were put to mechanical methods of exploitation. The major repairs of 99 km of oil pipelines, 72 km of water sluices, 11 km of gas-pipelies were made. Volume of oil processing at Atyrau OR OJSC in the first half-year 2002 hadn't exceeded 902.3 th. tons, which is 16.9% less than the level of the previous year. The main reason for low usage of plant's capacities is obsolete machinery, which doesn't allow satisfying of demand regarding high quality oil products. Further volume growth of oil extraction at Atyrau OR due to the program that directs to modernization and renewal of present plant's capacities is planned. Fulfillment of investment project on works' reconstruction and modernization will allow improving quality o oil processing and increase production of high quality oil products that meet European quality standards. Total volume of oil transportation through the system of KazTransOil CJSC for the first half-year of 2002 totaled 14,426 th. tons, which is 9.3% less than during the similar period of 2001 (15,908 th. tons). Decline of oil transportation was caused by putting CTC into operation and derivation from the system of KazTransOil CJSC of large volumes of tengiz oil. In the first half-year 2002 NSSC Kazmortransflot CJSC were rendered a service on transportation of Kazakhstan oil amounting to 1,757 th. tons (exceeded planned indicators by 12%) with own powers to harbors of Azerbaijan (Baku), Georgia (Batumi), Iran (Neka), Russia (Makhachkala). Total volume of gas transportation through main-line gas-pipelines of Intergaz Central Asia CJSC in the first half-year 2002 totaled 56,361bn m3, which is 5.9% less than corresponding value of 2001. Decline occurred due to decrease of of volume of Russian gas transit (decrease - by 6.15bn m3 or 15.6%). It hadn't influenced total volume of revenues from this type of activity, which grew by 3.3% relative to the similar period of 2001 owing to growth of share of Turkmen gas transportation through main-line gas pipeline (the growth relative to budgeted figures was observed - by 1.6bn m3 or 10.2%). Relative to the similar period of the previous year delivery of Kazakhstan gas for export increased - 2.8bn m3 against 529m m3 due to export of products of Karachaganak field (2.2bn m3). NC KazMunaiGaz CJSC informs that in the reported period growth of oil extraction volume, delivery structure and actual prices for oil formed level of revenues received from realization of products, works and services. Due to price decrease on energy carriers at the world, and, later, at regional markets the revenues of oil and gas extracting associations fell. For this reason production and social programs in 2002, necessary for enterprises' and regions' development, were minimized. Weighted average price of 1 ton of oil (excluding VAT) totaled 15,625 tenge and decreased relative to similar period of 2001 by (KZT17,922) 12.8%. Production price cost of extraction of 1 ton of oil in the first half-year 2002 in for the company as a whole has a tendency to decrease relative to the similar period of 2001 from KZT6,473 per ton to KZT5,550 per ton, or 14.3%. With a view to mobilize internal reserves works on cost reduction are held, as well as works on optimization of daughter and independent enterprises activity. Volumes of expected capital investments for group of considered by NC KazMunaiGaz CJSC in the first half-year 2002 totaled KZT25,260m, which is 22.3% greater than the level of the corresponding period of the previous year (KZT20,655m). In total enterprises that are the part of the group of companies NC KazMunaiGaz CJSC made payments amounting to KZT26,303m to republican and local budgets in the first half-year 2002. [2002-08-08]