KazMunaiGas Exploration and Development about growth of proved oil resources after change of auditor

KazMunaiGas Exploration and Development company, daughter company of Kazakhstan’s KazMunaiGas (KMG) national company, has announced increase in the proved oil resources (category 1P), according to the evaluation by Miller and Lents Ltd (MLL) company. 

KazMunaiGas Exploration and Development said that it has appointed MLL as an independent consultant to evaluate the resources by December 31, 2012. From 2006 to 2012 the resources were evaluated by Gaffney, Cline and Associates (GCA).

According to the MLL report, by the end of 2012 1P category resources increased by 53% (up to 116.8 million tons), while 2P category resources decreased by 34.5% (up to 148 million tons) against the end of 2011 as evaluated by GCA.

The company explained that MLL and GCA are the international consultants of the resources and their evaluation corresponds to the international demands, but they used different assumptions in their evaluations, which has led to significant difference in evaluation of the resources. The company claims that the differences are connected with the fundamental change of the physical and technological properties of the assets themselves.

KMG Exploration and Development is among top three oil production companies in Kazakhstan. In 2012 the company produced 12.19 million tons. In 2012 the net profit decreased by 23% to $1,079 billion. During IPO in September 2006 the company attracted over $2 billion.—0—