NUR-SULTAN
Kazakhstan’s state oil and gas company KazMunayGas reported a sharp rise in net profit to 254 billion tenge ($596 million) in the first half of 2021, 1.7 times more than in the same period last year, driven by a rise in the average oil price, an increase in revenues and a decrease in operating costs.
KazMunayGaz is the country’s operator for exploration, production, refining and transportation of hydrocarbons, representing the state’s interests in the oil and gas industry of Kazakhstan.
The company said that its revenues amounted to 450.707 billion tenge in January-June, 10.8 percent down from the same period in 2020, while liabilities decreased by 4.5 percent to 880.352 billion tenge.
The company’s gross profit increased 1.6 times, up to 133.16 billion tenge, operating profit – 1.9 times, up to 134.167 billion tenge, assets grew by 9.2 percent since the beginning of this year to 2.523 trillion tenge, equity – by 18.3 percent to 1.642 trillion tenge, the authorised capital has not changed and stood at 417.781 billion tenge.
The company said that the main positive impact on the revenue dynamics was the increase in the price of Brent oil by 22.0 percent year-on-year and the weakening of the average exchange rate of the tenge against the U.S. dollar by 7.2 percent year-on-year, as well as an increase in the trading volumes of KazMunayGaz International NV.
It said that revenue growth was restrained by the limitation of production at certain fields in accordance with the OPEC+ agreement, as well as a decrease in revenue of KazTransGas JSC, due to a decrease in gas export and international transit volumes, as well as the average gas sales price.
OIL PRODUCTION
As the COVID-19 pandemic disrupted production as well as demand for oil, OPEC+, a group of the Organisation of the Petroleum Exporting Countries (OPEC) and allied producers of which ex-Soviet Russia, Azerbaijan and Kazakhstan are members, cut output by a little more than 7 million barrels per day (bpd) to support prices and reduce oversupply. Earlier this year, members of the group agreed to ease cuts gradually by 350,000 bpd in May, another 350,000 bpd in June and around 450,000 bpd in July.
The cartel has now decided to increase production by a cumulative 400,000 bpd every month starting in August until it reaches the same production levels seen at the end of 2019. The ministers also agreed to extend their original agreement until the end of 2022 from an initially agreed date of April.
Kazakhstan will increase oil production to 1.491 million bpd from August, adding 16,000 barrels every month, Nurlan Nogaev, the country’s energy minister, said, commenting on the ministerial meeting of OPEC+ countries.
Oil production in Kazakhstan in 2020 reached 85.7 million tonnes. In 2021, the Central Asian country plans to produce 86 million tonnes of crude.