PetroKazakhstan Inc. - KazGerMunai Gas Flaring
May 17 2005 - 10:00AM
PR Newswire (US)
PetroKazakhstan Inc. - KazGerMunai Gas Flaring CALGARY, May 17
/PRNewswire-FirstCall/ -- PetroKazakhstan Inc. (the "Company")
announces that its joint venture "Kazgermunai" ("KGM") has recently
received a joint notification from the Ministry of Energy and
Mineral Resources ("MEMR") and the Ministry of Environmental
Protection ("MEP") of the Republic of Kazakhstan to eliminate the
flaring of gas (the "Joint Notice"). The Company's production
subsidiary AO PetroKazakhstan Kumkol Resources ("PKKR") is a 50%
shareholder in KGM. The Joint Notice, addressed not only to KGM but
also to the top management of 34 oil producers in Kazakhstan,
requires that KGM eliminates the flaring of associated gas and to
bring the volume of production of associated gas into line with the
available capacities for utilization of such associated gas. The
Joint Notice is signed by First Vice Minister of Environment of the
Republic of Kazakhstan Mr. S. Kesikbayev and by First Vice Minister
Energy and Mineral Resources Mr. B. Izmukhambetov. In compliance
with these instructions, KGM oil production has been reduced to
approximately 3000 bopd net to PetroKazakhstan. KGM is currently
constructing a gas treatment and LPG recovery plant at Akshabulak,
expected to be completed by August 2005. It is anticipated that oil
production will be increased to about 22,000 BOPD net to PKKR upon
operation of the Akshabulak gas plant. PKKR and the Company's joint
venture with Lukoil, Turgai Petroleum ("TP") were also among the 34
oil production companies on the distribution list for the Joint
Notice. However, as earlier reported, both PKKR and TP had earlier
reduced production levels to eliminate gas flaring in response to
an earlier demand by the MEP. The Company can also confirm that
PKKR has now been served with a court action by Turgai Petroleum
("TP") for the return of certain quantities of oil as earlier
disclosed in the Company's Press Release of May 02, 2005.
PetroKazakhstan Inc. is a vertically integrated, international
energy company celebrating its eighth year of operations in the
Republic of Kazakhstan. It is engaged in the acquisition,
exploration, development and production of oil and gas, refining of
oil and the sale of oil and refined products. PetroKazakhstan
shares trade in the United States on the New York Stock Exchange,
in Canada on The Toronto Stock Exchange, in the United Kingdom on
the London Stock Exchange and in Germany on the Frankfurt Exchange
under the symbol PKZ. As of December 27, 2004, PetroKazakhstan
shares began trading on the Kazakhstan exchange under the symbol
CA_PKZ. The Company's website can be accessed at
http://www.petrokazakhstan.com/. The Toronto Stock Exchange has
neither approved nor disapproved the information contained herein.
DATASOURCE: PetroKazakhstan Inc. CONTACT: Ihor P. Wasylkiw, Vice
President Investor Relations, (403) 221-8658, (403) 383-2234
(cell); Jeffrey D. Auld, Vice President, Treasurer, + 44 (1753)
410-020, + 44 79-00-891-538 (cell)
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