Kazmunaigas (Kazakhstan) has increased oil extraction, profit in the I half of 2003

/REUTERS, Almaty, Raushan Nurshayeva, August 5, 03/ - State oil company of Kazakhstan Kazmunaigas has increased extraction in the first half-year of 2003 by 5.5% to 3.8 m. tons and achieved growth of net profit by 30% in comparison with similar period of last year due to high oil prices, said the company's managing director Daniyar Berlibayev. "The first half-year was good for oil extracting companies because price for oil was very high. Net income equaled to KZT45 bn. (a bit more than $300 m.), in comparison with (similar period of) 2002 it has grown by 30%", - said Berlibayev at the briefing on Tuesday. Last year Kazmunaigas extracted 7.43 m. tons of oil and gas condensate. According to Berlibayev's words, this year the company wants to increase extraction to 7.70 m. tons, and by the year 2005 - extract 10 m. tons a year due to increasing of acting fields' effectiveness. Total volume of extraction of oil with gas condensate in Kazakhstan equaled in 2002 to 47.2 m. tons. Tengizshevroil, joint venture of Kazakhstan and the group of foreign companies, which is headed by American ChevronTexaco was recognized as the largest producer of oil - major exported goods of Kazakhstan. Last year it extracted 13.1 m. tons of oil. Berlibayev said that according to audited by Ernst & Young statement of Kazmunaigas for 2002, last year the company's net income rose by KZT20 bn. to KZT64 bn., revenue from sale - by KZT92 bn. to KZT415 bn., and consolidated assets equaled to KZT762 bn. (more than $5 bn.). Last year capital investments reached KZT78 bn., and this year due to own and borrowed funds Kazmunaigas, according to Berlibayev's words, intends to double this indicator, having borrowed KZT150 bn. of investments. In Berlibayev's opinion, growth of profit proves the necessity to preserve Kazmunaigas as the single company. Kazmunaigas was founded in the beginning of 2002, by means of joining assets of the state in oil and gas sphere, largest of which at that time were extracting Kazakhoil, oil pipe-line Kaztransoil and gas transporting Kaztransgas. "Figures are on hand. There was a very good result for our shareholder that proves accuracy timeliness of makinjg of the decision about joining the companies", - Berlibayev said. At the same time, Kazmunaigas plans to get rid of a part of non-specialized and unprofitable assets, and it prepares plan of restructuring for that purpose. According to the managing director's words, Kazmunaigas will have about a half of dependent companies out of 117 ones, 52 of which are daughter companies. "Only profitable projects should remain", - said Berlibayev, having added that plan of restructuring will be ready in September, and after that the government will examine it. [2003-08-05]