KMG EP: 2016 Results – Total Production Down 2%


JSC KazMunaiGas Exploration Production announces its operating results for the year 2016.

Production

Overall, KMG EP, including its stakes in Kazgermunai (“KGM”), CCEL (“Karazhanbasmunai”) and PetroKazakhstan Inc. (“PKI”), produced 12,154 thousand tonnes of crude oil (245 kbopd) for 2016, a 2% decrease on 2015.

Ozenmunaigas JSC (“OMG”) produced 5,555 thousand tonnes (112 kbopd), a 1% increase as compared to 2015. Embamunaigas JSC (“EMG”) produced 2,832 thousand tonnes (57 kbopd), a 0.3% increase as compared to 2015. The total volume of oil OMG and EMG produced was 8,387 thousand tonnes (169 kbopd), which is a 1% increase compared to production for 2015.

The Company’s share in production from CCEL, KGM, and PKI for 2016 amounted to 3,767 thousand tonnes of crude oil (76 kbopd), 6% less than in 2015, mainly due to a natural decline in production of oil from PKI assets.

Crude oil supplies and sales of oil products

In 2016, the Company’s combined sales from OMG and EMG were 8,405 thousand tonnes (165 kbopd) of which 4,946 thousand tonnes (97 kbopd) of oil was exported, 59% of the total sales volume; and 3,459 thousand tonnes (68 kbopd) of oil sold into the domestic market. Another 4 thousand tonnes of oil products were sold to the domestic market.

Out of 3,459 thousand tonnes (68 kbopd) of oil supplied by OMG and EMG to the domestic market, 2,578 thousand tonnes (51 kbopd) was supplied to Atyrau Refinery; and 881 thousand tonnes (17 kbopd) was supplied to Pavlodar Petrochemical Plant.

In Q1 2016, before the Company switched to independent oil processing scheme[1], domestic supplies were 830 thousand tonnes of oil. For the remainder of 2016, 2,629 thousand tonnes of oil was supplied to the domestic market for further refining.

As per the independent oil processing scheme, sales of oil products between April and December of 2016 was 2,324 thousand tonnes of oil products. For more details on petroleum product sales, please see Table No.2 below.

The share of domestic supplies from the resources of OMG and EMG was up to 41% in 2016 as compared to 33% in 2015. As previously reported, it is expected that the share of domestic supplies in 2017 will be 2.9 million tonnes of oil (57 kbopd) or around 33% of the total sales.

The Company’s share in the sales from CCEL, KGM, and PKI was 3,676 thousand tonnes of crude oil (75 kbopd), including 1,832 thousand tonnes (36 kbopd) supplied to export markets, or 50% of total sales volume. The domestic sales volume was 1,844 thousand tonnes (39 kbopd).

The Company’s oil supplies, including the share in KGM, CCEL, and PKI, changed in 2016 as compared to 2015. The share of export sales was up from 52% to 56%; the share of domestic sales was up from 40% to 44%; and supplies to Russia (intergovernmental agreement) were down from 8% to 0%.

Table 1. Production and sales of oil and oil products for 2016

 

thousand tonnes

 

 

 

kbopd

 

2015

2016

 

y/y, %

 

2015

2016

Oil production volumes

 

 

 

 

 

 

 

OMG

5 510

5 555

 

1%

 

111

112

EMG

2 823

2 832

 

0%

 

57

57

Total from OMG and EMG

8 333

8 387

 

1%

 

168

169

KGM, 50%

1 500

1 468

 

-2%

 

32

31

CCEL, 50%

1 069

1 064

 

0%

 

20

19

PKI, 33%

1 449

1 235

 

-15%

 

31

26

Total from joint ventures 

4 018

3 767

 

-6%

 

83

76

Total oil production 

    12 351

   12 154

 

  -2%

 

    251

    245

               
Crude oil sales             
OMG and EMG              
Uzen-Atyrau-Samara

2 797

2 797

 

0%

 

55

55

CPC

1 850

2 149

 

16%

 

37

42

Export

4 647

4 946

 

6%

 

92

97

Atyrau Refinery

2 420

2 578

 

7%

 

48

51

Pavlodar Petrochemical Plant

260

881

 

239%

 

5

17

sales of OMG oil products

62

4

 

-95%

 

1

Domestic market

2 742

3 462

 

26%

 

54

68

Russia

916

 

-100%

 

18

Total from OMG and EMG

8 305

8 408

 

1%

 

164

165

Export, %

56%

59%

 

 

 

 

 

Domestic market, %

33%

41%

 

 

 

 

 

Russia, %

11%

0%

 

 

 

 

 

KGM (50%)              
Export

440

434

 

-1%

 

9

9

Domestic market

1051

1 031

 

-2%

 

22

22

Total from KGM

1491

1 465

 

-2%

 

31

31

CCEL (50%)

 

 

 

 

 

 

 

Export

776

974

 

26%

 

14

18

Domestic market

191

19

 

-90%

 

3

0

Russia

70

 

-100%

 

1

Total from CCEL

1 036

993

 

-4%

 

18

18

PKI (33%)

 

 

 

 

 

 

 

Export

491

424

 

-14%

 

10

9

Domestic market

925

794

 

-14%

 

20

17

Total from PKI

1 416

1 218

 

-14%

 

30

26

Total from joint ventures 

 

 

 

 

 

 

 

Export

1 707

1 832

 

7%

 

33

36

Domestic market

2 167

1 844

 

-15%

 

45

39

Russia

70

 

-100%

 

1

Total from joint ventures 

3 944

3 676

 

-7%

 

79

75

Export, %

43%

50%

 

 

 

 

 

Domestic market, %

55%

50%

 

 

 

 

 

Russia, %

2%

0%

 

 

 

 

 

Total from KMG EP

 

 

 

 

 

 

 

Export 

6 354 

6 778 

 

                7% 

 

126 

133 

Domestic market 

4 910 

5 306 

 

8% 

 

100 

107 

Russia 

986 

0 

 

-100% 

 

19 

 

Total from KMG EP 

12 249 

12 084 

 

-1% 

 

245 

240 

Export, % 

52% 

56% 

 

 

 

 

 

Domestic market, % 

40% 

44% 

 

 

 

 

 

Russia, % 

8% 

0% 

 

 

 

 

 


Table 2. Production and sales of oil products for 2016

Oil products 

Production

 

Sales

thousand tonnes

Atyrau
Refinery

Pavlodar
Petrochemical
Plant

Total

 

Atyrau
Refinery 

 

Pavlodar
Petrochemical
Plant 

Total

80 RON gasoline

22,7

25,8

48,5

 

22,7

22,9

45,6

92 RON gasoline

176,1

112,8

288,9

 

166,7

106,9

273,6

95 RON gasoline

31,7

9,6

41,3

 

24,8

10,2

35,0

Diesel fuel

610,5

198,2

808,7

 

603,4

194,2

797,6

Aviation fuel

10,8

0,0

10,8

 

10,5

0,0

10,5

Total light oil products 

851,9 

346,4 

1 198,3 

 

828,1 

334,2 

1 162,3 

Vacuum gas oil

332,3

10,6

342,9

 

328,9

10,6

339,5

Fuel oil

604,8

89,1

693,9

 

590,7

83,1

673,8

Bitumen

0,0

26,0

26,0

 

0,0

26,0

26,0

Total dark oil products 

937,1 

125,7 

1 062,8 

 

919,6 

119,7 

1 039,3 

Liquefied gas

13,2

27,1

40,3

 

13,2

26,6

39,8

Heating oil

29,3

0,0

29,3

 

28,6

0,0

28,6

Sulfur

1,2

3,3

4,5

 

0,6

0,0

0,6

Calcinated coke

27,2

0,0

27,2

 

27,2

0,0

27,2

Total coke

22,3

25,0

47,3

 

21,0

2,2

23,2

Others

3,0

23,1

26,1

 

2,7

0,0

2,7

Other oil products 

96,2 

78,5 

174,7 

 

93,3 

28,8 

122,1 

Losses

113,8

65,2

179,0

 

0,0

0,0

0,0

Total

1 999,0 

616,8 

2 614,8 

 

1 841,0 

482,7 

2 323,7