PetroKazakhstan announces 30% decrease of production

PetroKazakhstan Inc. has decreased its oil production during the second quarter of 2005, PetroKazakhstan has informed KZ-today.

In particular, the production volumes totalled 9.64 million barrels of oil or an average of 105,947 barrels of oil per day compared to the second quarter 2004 production of 151,104 barrels of oil per day.

On 26th April production cut backs were initiated to comply with instructions from the Kazakh regulators to stop gas flaring immediately. If the current production restrictions remain through to the end of the year but PetroKazakhstan's share of Kazgermunai production increases to 21,000 barrels in the third quarter as the Akshabulak gas plant is commissioned, then the anticipated annual average production will be 110,000 barrels.

This is a reduction of 60,000 barrels per day or 35.3% from the target potential average of 170,000 barrels of oil per day.

The company continues its negotiations with the government for relaxation of the forced production cutbacks, in view of its current investment programme to achieve full gas utilisation by mid-2006.

PetroKazakhstan extracts oil at such fields as Aryskum, Kyzilkiya, Akshabulak, Kumkol, Kumkol South, Southern Kumkol, Kumkol North, Maibulak, Nuraly, Northern Nuraly, and Aksai.