English Russian Kazakh

Download centre

Full Annual ReportPDF 6.9MB
Strategy OverviewPDF 5.8MB
Corporate GovernancePDF 215.2KB
Financial StatementsPDF 306.0KB
Information for ShareholdersPDF 54.7KB

Download individual sections

Financial & operational highlightsPDF 136.5KB
Where we operatePDF 156.8KB
Chairman's statementPDF 76.9KB
Chief Executive Officer’s interviewPDF 115.9KB
Independent Directors’ statementPDF 90.3KB
Operating and financial reviewPDF 482.3KB


Delivering in challenging times

Annual Report 2015

Find out more

Continuing global economic uncertainty brings significant challenges and demands strong and effective solutions.

KMG EP is implementing the relevant strategies to ensure that we continue to deliver material value to all our stakeholders now and in the future. We are achieving this goal by being rigorous, resilient and responsive across all areas of our business.

Find out more
JSC KazMunaiGas Exploration Production (“KMG EP” or “The Company”) was formed in March 2004 through the merger of Ozenmunaigas JSC (OMG) and Embamunaigas JSC (EMG).

The Company retained its position as one of the top three oil producers in Kazakhstan last year as can be seen from the 2015 results. Last year the Company produced 12,351 thousand tonnes of crude oil (251kbopd) including its share in production from JV Kazgermunai LLP (KGM), CCEL and PetroKazakhstan Inc. (PKI). The volume of KMG EP’s proven and probable reserves, as of year-end 2015, audited by DeGolyer and McNaughton, increased to around 152 million tonnes (1,115 billion barrels), some 15% more than at year-end 2014. This was mainly due to the involvement in the development of reserves through the implementation of more effective geological and technical measures, including the drilling of wells.

The shares of the Company are listed on the Kazakhstan Stock Exchange (KASE) and its global depositary receipts are traded on the London Stock Exchange (LSE).
Delivering in challenging times
By being rigorous
The main component of the further development of the company is to improve production efficiency on mature fields. To perform this task we carry out constant control of production processes with a view to their optimization, compliance with the energy conservation policy, as well as finding ways to improve oil recovery.


Proven and probable reserves

As of year-end 2015, the volume of KMG EP’s proven and probable reserves audited by DeGolyer and McNaughton, increased to around 152 million tonnes (1,115 billion barrels), some 15% more than at year-end 2014. This was mainly due to the involvement in the development of reserves through the implementation of more effective geological and technical measures, including the drilling of wells.


thousand tonnes

Last year the Company produced 12,351 thousand tonnes of crude oil, including the share from KMG, CCEL and PKI.

At the end of 2015 the Company maintained its position in the top three companies in terms of oil production in Kazakhstan. Working with Scientific Research Institute of Mining and Drilling Technologies LLP, we have focused on improving the efficiency of production activities.


Capital expenditure in 2015 was 98 billion tenge, 23% lower than in 2014.

This is mainly due to lower investments in maintenance Capex as well as a decrease in both drilling activity and the cost of drilling, which was the result of a 15% discount obtained from the drilling contractor.

Delivering in challenging times
By being resilient
Implementation of the transformation programme will improve the production efficiency of our fields, will increase oil production and reduce the operating costs. Moreover, we work not only to preserve and increase the resource base of Kazakhstan, but also to explore new exploration areas.

4 priorities

We have four clear priorities for 2016:

  • Streamlining back office functions;
  • Improving functional discipline management;
  • Improving centrally-driven knowledge and technology sharing;
  • Increasing efficiency of well workovers by applying modern technologies in crude oil production


billion tenge

Economic benefits generated within the framework of the MTO project

The MTO and TORO projects will allow us to improve processes at all levels of control over the supply system, to lower stock levels in storage and also to shorten the lead times for organising purchases and sales. The overall benefit by the end of 2017 should be 3.3 billion tenge.

“Smart wells” project

Thanks to the “smart wells” project, additional production from Uaz may rise about 3%.

The time needed to restart well operations will be cut by 15-20%, the more economical mode of operating subsoil equipment will cut maintenance stoppages from 20 to 15 per year.

Delivering in challenging times
By being responsive
We are sensitive to our wider responsibilities and, even in challenging times, never lose sight of our long-term goals and aspirations. Safety and security, environmental protection, community and personal development are at the heart of our business. The welfare of our people and their communities is paramount and our commitment to our charitable, educational and sponsorship programmes remains robust.


billion tenge

Contractually required social expenditure

Social expenses in 2015 included funding for social programs and the environment in Atyrau and Mangistau of 1.9 billion tenge, and for local expert training of 0.7 billion tenge. The Company’s social policy strategy aims to promote the development of the regions.


billion tenge

Investments in environmental protection programmes at the four main production operations.

KMG EP is aware that its activities are directly related to the use of natural resources and recognises its responsibility to society for the responsible use of these resources and for the preservation of the environment.


Training session attendees

Since its formation, KMG EP has provided training and skills development for its employees. KMG EP holds various corporate training programmes to promote uniform corporate policies and strategic priorities.

In 2015 total attendance at all of the Company’s training sessions was 37,941, with many employees attending more than one session.

Financial and operational highlights




Financial and operational highlights




Financial and operational highlights

Net profit



Chairman's statement

“We have been able to improve the efficiency of our maintenance programme significantly in 2015 and we have benefitted from close cooperation with NC KMG through participation in the Transformation Initiative and the Technical Institute. But we need to do much more.”

Christopher Hopkinson

First Deputy Chief Executive of JSC NC KazMunayGas
Chairman of the Board of Directors of KMG EP

Where we operate

Independent Directors’ statement

Over the course of 2015 and during the 2016 year to date, the Independent Non-Executive Directors (‘INEDs’) have experienced challenging times with respect to the corporate governance of KMG EP. The INEDs believe that shareholders should be aware of those challenges, and set out below a brief summary.

Download full Annual Report


Chief Executive Officer's interview

“Our company constantly improves technologies for crude production; and optimises operations to reduce capital expenditure and the costs of extracting crude. We are in favour of increasing exploration.”

Kurmangazy Iskaziev

Chief Executive Officer of KMG EP


Contact us

Registered office

JSC KazMunaiGas Exploration Production
17, Kabanbai Batyr ave.

Astana, 010000, Republic of Kazakhstan

Tel.: +7 (7172) 97-79-12
Fax: +7 (7172) 97-74-26

Investor relations(for institutional investors’ inquiries)

Tel.: +7 (7172) 97-54-33

Saken Shoshanov

Public relations(for media inquiries)

Tel.:+7 (7172) 97-79-08
Yelena Pak