KazMunaiGas Exploration and Production on its production targets

London-listed Kazakh oilproducer KazMunaiGas Exploration and Production (KMG E&P) is considering purchasing oil assets worth $2-2.5 billion, Novosti Kazakhstan quoted the Company’s Director General Askar Balzhanov as saying. According to him, within the following 3 years the Company plans to spend about $1 billion on geological exploration. Mr. Balzhanov didn’t specify what assets the Company is thinking of purchasing. In a separate statement Mr. Balzhanov said that the Company plans to produce over 13 million tons of oil in 2012-2013. For the 9 months of 2011 the Company produced 9.207 million tons of oil, 7% down against the like period of 2010. According to the Company’s officials, the production indicators was lower due to the industrial action in May-August 2011, as well as due to suspended electric power supply in January-April related to the inclement weather conditions. The production target is 870 000 tons behind the plan from January to October. KazMunaiGas Exploration Production was established in March 2004 and is among the top three oil producers in Kazakhstan. Ordinary and preferred shares of KazMunaiGas Exploration Production are listed on the Kazakhstan Stock Exchange, and its global depository receipts (GRDs) are listed on the London Stock Exchange. Through National Company KMG, the state owns 60% of KMG EP’s shares. KazMunaiGas Exploration Production is developing 41 fields in Western Kazakhstan. The Company is the largest taxpayer in Kazakhstan.