Wednesday, May 30, 2012 -
Kazakhstan's state-run oil and gas firm KazMunaiGas Exploration Production (KMG EP) on Wednesday said it is increasing capital expenditures by 12 percent to almost $1 billion this year.
The company said in the statement that capital expenditures would be boosted to $955 million in 2012 from $852 million last year.
Around $90 million of this will be spent on modernizing its production infrastructure in line with previously announced plans, as part of efforts to improve working conditions and sustain future output.
Another $14 million will go to comply with environmental and safety standards and stabilize production.
KMG EP also plans to drill another 144 wells in its Uzen oil field in the western Caspian Sea province of Mangistau.
The 2012 budget is based on the price of crude at $90 per barrel.
The company also decided to increase the annual dividend payment by 62.5 percent. The total dividend for 2011 will come to $615 million, according to the statement on the company’s web site at kmgep.kz.
The board of directors also announced the start last week of drilling on the White Bear gas field in the North Sea. The company holds a 35 percent stake in the joint project. British multinational oil and gas firm BG Group owns a 45 percent stake, while the remaining 20 percent belongs to Maersk Oil UK.
KMG EP is one of the top three oil and gas operations in Kazakhstan. It produced an average of 250,000 barrels of oil per day of crude in 2011.