JSC NC KazMunayGas First Quarter of 2023 Trading Update

Joint-stock (JSC) National Company (NC) KazMunayGas (“KMG” or “Company”), Kazakhstan's national oil and gas company, announces its operating results for the first quarter of 2023. 

Highlights for first quarter of 2023:

• Oil and gas condensate production increased by 8.7% and amounted to 5,961 thous. tonnes;
• Oil transportation volumes increased by 3.0% and amounted to 18,858 tonnes;
• Hydrocarbons refining volumes at the Kazakh and Romanian refineries are increased by 8.1% and amounted to 4,936 thous. tonnes. 

Operating results are represented in accordance with KMG's ownership interest in joint ventures and associates and 100% of results for consolidated subsidiaries, unless otherwise stated. 

Upstream

Oil and gas condensate production volume for the first quarter of 2023 amounted to 5,961 thous. tonnes (499 kbopd) representing an increase by 8.7%. Production volume of associated gas and natural raised by 12.3% to 2,410 mln m³. 

Oil production at Tengiz increased by 0.8% amounting to 1,469 thous. tonnes (130 kbopd). Associated gas production increased by 0.1%, amounting to 811 mln m³.

A significant increase in production at Kashagan is associated with an increase in KMG's share in the project from 8.44% to 16.88% as a result of the completion of a deal to buy back a 50% stake in KMG Kashagan B.V. from Samruk-Kazyna JSC in September last year. Oil and gas production at Kashagan amounted to 794 thous. tonnes (70 kbopd) and 503 mln m³, respectively, showing an increase of 105.5% and 113.3%, respectively.

Oil and condensate production at Karachaganak decreased by 1.3% to 281 thous. tonnes (25 kbopd)due to restrictions on the acceptance of sour gas for processing by the Orenburg gas processing plant. Gas production increased by 2.7% and amounted to 565 mln m³.

The volume of oil and condensate production at operating assets increased by 1.8% to 3,417 thous. tonnes (275 kbopd) The increase in oil and condensate production is due to taken effective planned geological and technical measures at the Mangistaumunaigaz fields and an increase in production at Embamunaigaz. At the same time, the increase in oil production at operating assets was partially offset by a decrease in production at Kazgermunai due to a natural production decline at mature fields. Gas production decreased by 3.4% to 531 mln m³ mainly due to the gas factor at Kazakhturkmunai. 

Midstream

The total volume of oil trunk pipelines and sea transportation increased by 3.0% to 18,858 thous. tonnes. 

The volume of oil transportation through trunk pipelines increased by 4.5% and amounted to 16,765 thous. tonnes. The growth mainly was due to an increase in the export volumes of Kashagan oil in the KazTransOil system in direction to Samara, as well as the transportation of oil in direction to the port of Aktau from the Dunga and Tengiz fields.

The total volume of maritime oil transportation decreased by 7.7% to 2,094 thous. tonnes, which was mainly due to decrease in oil volumes in the Mediterranean Sea where decrease in the export volumes of Kazakh shippers was due to the redirection of supplies by other routes. 

As part of a five-year agreement on the transit of oil along the Aktau-Baku-Ceyhan route with an annual volume of 1.5 mln tonnes, concluded in 2022 between KMG and the Azerbaijani company SOCAR, in April of 2023 the first batch of oil in the amount of 90 thous. tonnes was shipped from the port of Ceyhan in the direction of the Romanian port of Constanta with unloading in the Petromidia refinery 

Trading

Sales volumes of KMG's own produced oil and gas condensate increased by 13.3% and amounted to 5,936 thous. tonnes, of which 65.9% was exported. 

Supplies of own produced oil and gas condensate volumes to cover the needs of the domestic market amounted to 2,027 thous. tonnes, including deliveries of crude oil from operating assets (Ozenmunaigas, Embamunaigas, Kazakhturkmunai and Urikhtau Operating) in the amount of 1,294 thous. tonnes to Atyrau, Shymkent and Pavlodar refineries for further oil refining and sales of oil products. 

Downstream

The total volume of hydrocarbon processing increased by 8.1% compared to the same period in 2022 and amounted to 4,936 thous. tonnes: 

• At Kazakhstani refineries, the volume of hydrocarbon refining increased by 1.8% and amounted to 3,581 thous. tonnes. The increase in refining volumes was due to the growth in demand for oil products in the domestic market. The decrease in refining volumes at Shymkent refinery due to its planned overhaul in March was offset by an increase in refining volumes at the Atyrau Refinery and Pavlodar Refinery;
• The refining volume at the KMG International refineries (Petromidia, Vega) in Romania increased by 29.2% and amounted to 1,355 thous. tonnes. The increase in refining volumes was due to a long shutdown of the Petromidia plant for scheduled overhaul last year and an increase in demand for oil products in the reporting period. 

The volume of production of oil products at Kazakh and Romanian refineries increased by 9.8% and amounted to 4,585 thous. tonnes: 

• Kazakhstani refineries produced 3,267 thous. tonnes of oil products, which is 3.7% more than in the same period in 2022, mainly due to the volumes of Atyrau refinery, at the same time, the production of oil products at Shymkent refinery was lower due to its scheduled overhaul in March 2023;
• Refineries of KMG International (Petromidia, Vega) produced 1,318 thous. tonnes of oil products, which is 28.8% higher than in the same period of last year. The increase in indicators was due to a corresponding increase in refining volumes at the Petromidia refinery. 

For further information, please visit https://www.kmg.kz/en/investors/reporting/ 

Contacts:      

Email: ir@kmg.kz

Tel: +7 7172 78 64 34

About JSC National Company KazMunayGas:

JSC National Company KazMunayGas (KMG) is Kazakhstan's leading vertically integrated oil and gas company, operating assets across the entire production cycle from the exploration and production of hydrocarbons to transportation, refining and specialized services. Established in 2002, the company represents Kazakhstan’s interests in the national oil and gas industry. 

KMG’s main assets are as follows:

Upstream: Ozenmunaigas (OMG) – 100%, Embamunaigas (EMG) – 100%, KazakhTurkmunai (KTM) – 100%, KazMunayTeniz – 100%, Urikhtau (UO) – 100%, Mangistaumunaigaz (MMG) – 50%, Kazgermunai (KGM) – 50%, Karazhanbasmunai (KBM) – 50%, KazakhOil Aktobe (KOA) – 50%, PetroKazakhstan Inc (PKI) – 33%, Tengizchevroil (Tengiz) – 20%, Karachaganak – 10%, Kashagan – 16.88%.

Midstream: KazTransOil – 90%, Kazakhstan China Pipeline (KCP) – 50%, Munai Tas – 51%, Batumi Oil Terminal – 100%, Caspian Pipeline Consortium (CPC) – 20.75%, Kazmortransflot – 100%.

Downstream: Pavlodar refinery – 100%, Atyrau refinery – 99,53%, Shymkent refinery – 49,72%,
KMG International – 100%, Petromidia – 54,63%, Vega – 54,63%, KazRosGas – 50%, Kazakhstan

Petrochemical Industries Inc – 49.5%.