KazMunaiGas Exploration Production reconsiders budget for 2013

Kazakhstan, Astana, July 12 / Trend D. Mukhtarov / The board of the Kazakh KazMunaiGas company has approved an adjusted budget for 2013, the company said on Friday. According to the new one, capital expenditures in 2013 are planned to reach168 billion tenge ($1.121 billion) or 17 billion tenge ($ 114 million) less compared to the 185 billion tenge ($1.235 billion) approved in December 2012. According to the report, the decrease in capital investments is connected with the decrease in the cost of exploration drilling by 11 billion tenge ($74 million). Moreover, the plan of implementing the modernisation programme is downward by seven billion tenge ($47 million). The decrease in the costs of the programme in 2013 is connected with the postponement of the construction of some facilities in the coming years. The adjusted budget envisages an increase in drilling expenses worth $1 billion tenge ($8 million) related to the drilling of five additional deviated wells and six exploitation wells at Embamunaigas's fields. 'These measures are aimed at ensuring a rational use of funds taking into account the current economic and production figures', a statement said. KazMunaiGas Exploration Production is one of the top three oil producers in Kazakhstan. The company's production volume includes shares in JV Kazgermunai LLP, CCEL (Karazhanbasmunai JSC) and PetroKazakhstan, amounting to 12.2 million tons (247,000 bpd) in 2012. The company's proven and probable reserves at the end of 2011 amounted to 226 million tons (1.7 billion bbl), and about 2.1 billion barrels with consideration of shares in joint ventures. Do you have any feedback? Contact our journalist at agency@trend.az