Azerbaijan, Baku, Dec. 21 / Trend E. Kosolapova/
No damage was caused to Kazakh KazMunaiGas Exploration Production's (KMG EP) production facilities during the disturbance that took place in the city of Zhanaozen on the Dec. 16, KMG EP reported on Wednesday.
"The situation at the Uzen oil field is stable," the company said. "Average daily production rate is maintained approximately at the level of previous days but somewhat below the planned level due do a number of power cuts in the field in December."
On Friday mass riots took place in the Kazakh oil town of Zhanaozen in the Mangistau region which killed 14 and injured about 90 people. President Nursultan Nazarbayev signed a decree to impose a state of emergency in the area from Saturday. According to the Prosecutor General's Office, situation in the Zhanaozen city is gradually stabilizing.
Armed security was arranged at all the Uzenmunaigas (UMG) (company affiliated to EP KMG) production facilities with the help of police.
Meanwhile the UMG administrative building was set on fire and looted, much of the office equipment and documentation was destroyed during the disturbances. A temporary headquarters, located in a different building, has been set up in order to provide operational guidance for the site.
The company has experienced some difficulties transporting its employees to facilities due to drivers' concerns for their safety. Alternative transportation was used to deliver technical personnel to the field, which allowed the company to maintain production. The number of oilfield workers returning to work is reaching normal levels as the police are establishing control and the situation continues to stabilize. The Company expects to meet the previously announced annual oil production target of 12.3 million tons, including shares in joint ventures.
KMG EP is among the top three Kazakh oil and gas producers. The overall production in 2010 was 13.3million tons of crude oil, including the Company's share in Kazgermunai, CCEL, PKI and NBK. The total volume of proved and probable reserves, as at the end of 2010 was 232million tons (1.7bn bbl), including shares in the associates - about 2.2 billion barrels. The Company's shares are listed on the Kazakhstan Stock Exchange and the GDRs are listed on The London Stock Exchange.
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