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Full Annual ReportPDF 3.7MB
Strategy OverviewPDF 2.9MB
Corporate GovernancePDF 299.8KB
Financial StatementsPDF 395.2KB
Information for ShareholdersPDF 65.3KB

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Financial & operational highlightsPDF 131.7KB
Where we operatePDF 103.9KB
Competitive advantages & industry positionPDF 99.3KB
Chairman's statementPDF 75.2KB
Chief Executive Officer interviewPDF 94.9KB
Operating and financial reviewPDF 355.3KB


Unlocking potential

Annual Report 2014

KazMunaiGas Exploration Production JSC is the largest Kazakhstan oil and gas company listed on the Kazakhstan and London Stock Exchanges and one of the top oil producers in Kazakhstan.

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KazMunaiGas Exploration Production JSC (KMG EP or ‘the Company’) was formed in March 2004 through the merger of Ozenmunaigas JSC (OMG) and Embamunaigas JSC (EMG).

Throughout 2014 the Company maintained its position as one of Kazakhstan’s top oil producers, delivering a total of 12.3 million tonnes of crude oil (250 kbopd), including production from the Company’s stakes in JV Kazgermunai LLP (KGM), CCEL and PetroKazakhstan Inc (PKI). As of year-end 2014, the proven and probable reserves of KMG EP, including its subsidiaries and joint venture interests, stood at 177 million tonnes (1.3 billion barrels), of which OMG, EMG, Kazakh Gas Processing Plant LLP and Ural Oil and Gas LLP (Fedorovskiy block) account for 132 million tonnes (1.0 billion barrels).

The Company’s shares are listed on the Kazakhstan Stock Exchange (KASE) and its global depositary receipts (GDRs) are listed on the London Stock Exchange (LSE).


Unlocking potential through ...

... the efficient management of our core assets

Unlocking potential through ...

... new discoveries

Unlocking potential through ...

... maintaining social stability

We are continuing to unlock potential across our asset base by maintaining stable production and improving the effectiveness of our production process. We continue to drive investment across our business to ensure we remain one of the leading oil and gas companies in Kazakhstan.

By planning our production for 2015

Planned production in 2015 is expected to be around 5.4 million tonnes (109 kbopd) from JCS Ozenmunaigas (OMG) and 2.8 million tonnes from JCS Embamunaigas (EMG). This will be around a 1% increase on our 2014 production output.

By modernising and upgrading our assets and operations

We are carrying out a modernisation programme to ensure that production forecasts are more accurately estimated and our production rates are more precisely controlled. We are continually investing to replace obsolete equipment, construct new production facilities and introduce new technologies to ensure we become a more modern and productive organisation and meet the highest standards of compliance with health and safety and environmental protection requirements.

By utilising state-of-the-art technologies for oil recovery

The ages of our oil fields vary between 10 and 100 years so it is important that we use the most appropriate methods to improve oil recovery efficiency. During 2014 we began testing a new type of technology – polymer flooding.

We are focused on strengthening our leading position through the exploration of the most promising blocks. Maximising the potential of our oil and gas portfolio also requires the selective acquisition of oil and gas producing assets in Kazakhstan and internationally.

Memorandum on cooperation in the field of exploration

In February 2015, KMG EP and the Committee of Geology and Subsoil Use of the Ministry for Investments and Development of the Republic of Kazakhstan signed a Memorandum on Mutual Cooperation in the field of explorations aimed at improving exploration efficiency and conducting geological of hydrocarbon crude in Kazakhstan.

Discovery of a new deposit

During the year a new oil deposit was discovered at the Rozhkovskoye field. Ural Group Limited (UGL), of which KMG EP acquired a 50% stake in 2011, is exploring the Rozhkovskoye field. The discovery in this deposit confirms the high potential of this asset.

We believe that a consideration of corporate social responsibility is integral to ensuring the protection of the long term interests of all our stakeholders. Our business operations are often the sole source of both social and economic development in the regions where we operate. We fully acknowledge our responsibilities to maintain social stability in these regions.

Maintaining social stability in the regions

We provide employment to more than 26,000 people in several regions of Kazakhstan. We continue to improve employment conditions by investing in the construction of social facilities alongside our industrial operations. It is important that we maintain social stability in these regions and we have made significant investments in the construction of schools, living quarters, health and sports centres, civic centres and other facilities.

By ensuring stability of fair wages

In April 2014 a Unified System of Wages for employees working in exploration and production divisions was implemented throughout the NC KMG Group. Specialists from subsidiaries of the group spent 18 months determining the best way to address the issue. The new system of wages is based on a unified rate matrix.

By providing training and development for all staff

The motivation and commitment of our employees is essential in driving our business forward. The recruitment, retention, training and development of motivated and effective staff will be key to our future success. We provide training and skills development of our employees on an annual basis. We also hold extensive corporate training courses, workshops and modular training programmes for our employees to help them understand the company’s corporate and strategic development. In 2014, more than 43,000 KMG EP group employees completed in-company training.

Financial and Operational Highlights

Revenue, billion KZT



Financial and Operational Highlights

Net cash, billion KZT



Financial and Operational Highlights

Oil production, million tonnes per year



Chairman's Statement

KMG EP aims to make an efficient use of its resources...

Christopher Hopkinson

Where we operate

Competitive Advantages & Industry Position

The largest oil and gas company in Kazakhstan

Download full
Annual Report


Chief Executive Officer's Interview

Each year, the Company faces new challenges...

Abat Nurseitov


Contact us

Registered office

JSC KazMunaiGas Exploration Production
17, Kabanbai Batyr ave.

Astana, 010000, Republic of Kazakhstan

Tel.: +7 (7172) 977 427
Fax: +7 (7172) 977 426

Investor relations(for institutional investors’ inquiries)

Tel.: +7 (7172) 97 54 33

Head of IR
Asel Kaliyeva

Public relations(for media inquiries)

Tel.:+7 (7172) 97 79 15
Yelena Pak