The budget of the national oil production company KazMunaiGas (KMG) will be corrected, because of oil price decline, Sauat Mynbayev, chairman of Board of KazMunaiGas said at a briefing in Astana on Tuesday.
“Our budget was based on the oil price of $80.00 per barrel. But we are revising the budget, considering lower prices. The price could be about $50.00 per barrel,” Mynbayev said and added that the company’s investment program will be corrected as well.
He said the company does not expect reduction of oil production.
“Next year we plan to remain the volume of oil production at this year’s level. There are also plans to increase this volume,” Mynbayev said.
During 2014 KMG plans to extract 8.1 million tons of oil or 165,000 barrels of oil a day on its main assets – Ozenmunaigas and Embamunaigas. Kazgermunai, CCEL and PetroKazakhstan Inc are expected to fulfill the earlier adopted production plan for year 2014 and KMG’s share in the production will total 4.09 million tons or 84,000 barrels a day.
