KazMunaiGas 2004 net profit surges to $603 mln

/REUTERS, Astana, Raushan Nurshayeva, January 20, 05/ - Kazakhstan's state oil and gas company KazMunaiGas said on Thursday its net profit surged to 78.363 billion tenge ($603 million) in 2004, a 33.8 percent rise over the previous year, according to preliminary data. The rise in profits was largely due to higher oil output and oil transportation, as well as high world prices for oil, the company said in a statement. KazMunaiGas President Uzakbai Karabalin said the company, Kazakhstan's second largest oil producer after ChevronTexaco-led Tengizchevroil, produced 8.9 million tonnes of crude oil and gas condensate (185,000 barrels per day) last year, a one million tonne increase over 2003. KazMunaiGas exports stood at 6.7 million tonnes (139,000 bpd) last year, Karabalin said. "High world oil prices allow us to boost capital investment and modernise," Karabalin said. He said capital investment grew by 12.7 percent last year to 116.792 billion tenge. KazTransOil, a KazMunaiGas subsidiary, raised oil transportation via its pipeline network by 12.3 percent to 38.4 million tonnes last year. KazTransGas increased gas transportation by 1.1 percent last year to 121.413 billion cubic metres. Kazakhstan handles large volumes of natural gas flowing from its neighbours Turkmenistan and Uzbekistan to Russia via the Central Asia-Centre pipeline. Apart from land transports, KazMunaiGas subsidiary Kazmortransflot shipped 4.014 million tonnes of crude for exports via the Caspian Sea, a 56.9 percent rise over 2003. (According to IMF estimates, a tonne of Kazakh oil is equivalent to 7.6 barrels). ($1=KZT130) [2005-01-20]