Petrokazakhstan (NYSE:PKZ)
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PetroKazakhstan Gas Utilization
CALGARY, April 21 /PRNewswire-FirstCall/ -- PetroKazakhstan Inc. (the
"Company") has received a copy of a press release believed to have been issued
earlier today by the press service of the Ministry of Energy, Mines and Mineral
Resources ("MEMR") which reads as follows:
"News from Information Agency KZ-today
April 21, 2005
Astana
RoK MEMR sets six months deadline for the subsurface user to
eliminate shortcomings at Tengiz and Korolevskoye fields.
Conditions at oil fields Tengiz and Korolevskoya (TengizShevrOil) and
Kumkol (PKKR and TP) have been considered at a scheduled CCD sitting
at MEMR - KZ today was informed of it by MEMR press-service.
Based on the materials submitted by the subsurface user CCD
underlined significant breaches of oil fields development rules at
Tengiz and Korolevskoye. In this connection CCD's decision sets
strict requirements on elimination of these shortcomings and sets a
six months deadline for the second consideration of the conditions of
the development of these fields.
CCD has also noted that its repeated instructions have not been
fulfilled by PetroKazakhstan Kumkol Resources ("PKKR") and Turgai
Petroleum ("TP"). In this connection CCD had to make a decision to
set limits on oil and gas production at Kumkol in accordance with the
level set by the Committee on Geology and Subsurface Use of MEMR
which (level) excludes associated gas flaring."
The Company, at this time has not received a copy of the decision of the
Central Committee on Oil and Gas Field Development ("CCD") and is unable to
fully assess the impact of this decision on the production of PetroKazakhstan
Kumkol Resources and Turgai Petroleum.
PetroKazakhstan can at this time make the following comments:
- Under the provisions of new legislation adopted on 1st December 2004,
subsoil users are required to provide for full gas utilization (no
flaring) except under extremely limited circumstances.
- PetroKazakhstan has a plan for full gas utilization on its operated
fields by 1st July 2006. This plan is being implemented and has been
submitted to the appropriate regulatory bodies.
- Previous measures undertaken by PetroKazakhstan to reduce gas flaring
include the construction of a 55 Megawatt power plant at Kumkol as
well as re-injection of associated gas from the Aryskum field. The
Company estimates that the production of associated gas from the
Kumkol South and South Kumkol fields is currently utilized at
approximately 84%.
- According to official Kazakh statistics, about 20% of the associated
gas production of Kazakhstan was flared during the first quarter of
2005.
- In 2004 - 2005 PetroKazakhstan provided a subsidy of US$ 12 million to
assist with the local distribution of gas to the residents of the City
of Kyzylorda
The Company is committed to providing timely information to its shareholders
and will continue to do so as more information becomes available.
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)