Kazakh oil and gas producer KazMunaiGas Exploration Production (RDGZ.KZ), or KMG EP, said Monday it has delayed its plans to acquire 33% in PetroKazakhstan from its parent company until the second half of this year due to an upcoming new tax code.
"In view of the current fiscal uncertainty KMG EP deems it prudent to adjust some plans for 2008 acquisitions," KMG EP said in a statement. "In particular the acquisition of 33% in PetroKazakhstan, originally planned for the first half of 2008, will now be considered for completion in the second half of 2008."
The 33% stake in PetroKazakhstan, co-owned by China National Petroleum Corp., is expected to add more than 2 million tons to KMG EP's annual production.
The company said it hasn't "revised its existing operational and investment plans to reflect changes in the fiscal burden" as Kazakhstan 's new tax code was still being developed. KMG EP said it would announce plans for 2009 by the end of this year.
The company also said Monday it was starting a non-deal-road-show to update investors and analysts on its plans and operations.
KMG said it plans to produce nearly 12 million metric tons of oil this year.