London-listed Kazakh oil and gas producer
KazMunaiGas Exploration Production ,or KMG EP, said Tuesday its 2011 capital
expenditure is expected to rise 15% to 99.1 billion tenge ($673 million) due to
the increase in production drilling and in exploration budget.
"The increase in capital expenditure as compared to 2010 is due to the
increase in production drilling from 213 wells to 239 wells and an increase in
exploration budget from KZT4 billion to KZT8 billion," the company said in
a statement, adding that its subsalt drilling budget would be considered
separately.
The company's budget assumes an average 2011 Brent oil price of $65 per barrel.
KMG EP plans to produce 9.1 million metric tons of oil, or 183,000 barrels a
day, in 2011 from its core assets, Embamunaigas and Uzenmunaigas. This year's
target production from these fields is 8.8 million tons, or 177,000 barrels a
day.