Leading Kazakh Oil Producer. September 2011

Transcription

1 JSC KazMunaiGas Exploration Production Leading Kazakh Oil Producer September

2 Important Notice Forward-looking statements This document includes statements that are, or may be deemed to be, forward-looking statements. These forward-looking statements can be identified by the use of forward-looking terminology, including, but not limited to, the terms believes, estimates, anticipates, expects, intends, may, target, will, or should or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. These forward-looking statements include all matters that are not historical facts. They include, but are not limited to, statements regarding the JSC KazMunaiGas Exploration Production ( Company ) intentions, beliefs and statements of current expectations concerning, amongst other things, the Company s results of operations, financial condition, liquidity, prospects, growth, strategies and as to the industries in which the Company operates. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances that may or may not occur. Forward-looking statements are not guarantees of future performance and the actual results of the Company s operations, financial condition and liquidity and the development of the country and the industries in which the Company operates may differ materially from those described in, or suggested by, the forward-looking statements contained in this document. The Company does not intend, and does not assume any obligation, to update or revise any forward-looking statements or industry information set out in this document, whether as a result of new information, future events or otherwise. The Company does not make any representation, warranty or prediction that the results anticipated by such forward-looking statements will be achieved. Cautionary Note to US Investors The US SEC permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that the company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. The crude oil reserves of Company within this document have been estimated by Gaffney, Cline & Associates ( GCA ) according to standards established by the Society of Petroleum Engineers ( SPE ) and the World Petroleum Congresses ( WPC ) and thus proved reserves may differ from those estimated according to the definitions of the US SEC. Further, the Company uses certain terms in this document in referring to the Company s reserves, such as probable or possible reserves, that the US SEC s guidelines would prohibit it from including in filings with the US SEC if the Company were subject to reporting requirements under the US Exchange Act. Prospective investors should read The Company Company s Reserves section in IPO prospectus and the report of GCA, an international oil and gas consultant, on the Company s reserves, included in this document (the GCA Report ), for more information on the Company s reserves and the reserves definitions the Company uses. 2

3 KMG EP: key subsidiary of National Company KazMunaiGas Trading on LSE (GDRs) and KASE Foreign institutions (including CIC) Local pension funds Other investors 37% (1) 63% (1) KMG EP Сore Assets Uzenmunaigas 100% Embamunaigas 100% Acquisitions in Kazgermunai 50% (Apr 2007) CCEL 50% (Dec 2007) PKI 33% (Dec 2009) Acquisitions in White Bear 35% 4 exploration blocks 100% UGL 50% (Fedorovskiy block) Mangistaumunaigas 50% (2) Mining Kazakhmys (11%) Republic of Kazakhstan Finance sector BTA (81.5% ) 100% HalykBank (11.5%) Kazkommertsbank (18.3%) Alliance Bank (67.0%) Holding Samruk-Kazyna Other largest National Companies KazAtomProm (100%) Kazakhtelecom (45.9%) 100% Kazpost t(100%) KEGOC (100%) National Company KazMunaiGas Upstream TengizChevroil 20% Kashagan 16.81%; KazMunaiTeniz 100% Transportation KazTransOil 100% KazTransGas 100% CPC 19%; KCP 50% Refining, marketing, services KMG - refinery and marketing 100% Atyrau refinery 99.5% Shymkent refinery 50% Pavlodar petrochemical plant 100% KazRosGas 50% TenizService 49% KING (research institute) 98.3% Rompetrol 100% Notes: (1) Ordinary shares, excluding treasury shares; (2) In progress, subject to approval 3

4 KMG EP Investment Case The largest listed Kazakh oil producer Preferential access to reserves and infrastructure through NC KMG Top Kazakh Oil Producers (kbopd, 1H11) TCO 525 KMG EP pro-forma KPO (2) Corporate governance in line with international standards to ensure protection of minority shareholders KMG EP (UMG+EMG) Aktobemunaigas Mangistaumunaigas KGM % 50% Delivery of strategic goals since IPO in 2006 TurgaiPetroleum PKKR CCEL PKI 33% 50% Strong FCF generation KOA KTM % 51% Diverse growth opportunities Other KMG EP offers a unique investment opportunity in Kazakhstan ss oil sector Note: (1) Consolidated KMG EP share, including KGM 50%, CCEL 50% and PKI 33% (2) Including stakes in KOA, KTM, MMG, acquisition of which is currently subject to revision and approval, based on 2010 results 4

5 KMG EP today vs IPO IPO 2006 Present Consolidated production 192 kbopd (FY06) 258 kbopd (1H11) Consolidated 2P reserves 1,495 mmbbl 2,156 mmbbl Dividends per GDR US$0.66 (FY06) US$0.91 (FY10) Dividends paid Share buy back US$1,701m US$383m Number of exploration blocks 3 10 Net cash US$2.4bn (post IPO) US$3.8bn (1H11) Market capitalisation US$6.1bn US$6.9bn Average Brent price US$65 US$111 5

6 Operating overview RUSSIA Producing asset Exploration block Exploration assets under MoU with NC KMG Exploration asset being acquired Stepnoi Leopard UGL 50% (Fedorovskiy block) KAZAKHSTAN Astana EMG Temir C1 block Liman Taisoigan Teresken PKI 33% Bobek, Makhambet East Zharkamys 1 Urikhtau KGM 50% Zhambyl R9 KOA 50%, KTM 51% Ustyurt Karaton-Sarkamys Kolzhan 2P reserves 2010, Production 1H11, C2 block Kyzylorda mmbbl kbopd UMG Almaty CCEL 50% Uzen-Karamandybas UMG & EMG 1, UZBEKISTAN Zhenis KGM (50%) KYRGYZSTAN Godina MMG 50% CCEL (50%) PKI (33%) TOTAL 2, Exploration acreage at UMG & EMG ~ 41,118 km 2 Note: KOA, KTM and MMG acquisition deals are subject to approval by regulating bodies 6

7 Strategy Maximisation of shareholder value Reserves increase Production increase Profitability improvement M&A Onshore exploration Offshore projects Onshore consolidation in Kazakhstan Caspian offshore Selective international acquisitions Organic growth top priority Significant increase in exploration expenditures Target: 20% offshore share in production Agreement with NC KMG signed in May 2011 access to Caspian offshore blocks By 2020 KMG EP key player in the Caspian region, able to compete globally 7

8 Organic growth and M&A drivers of future growth -M&A -Exploration Completed acquisitions UMG & EMG H11 The chart not to scale, intended to illustrate direction of expected trends

9 Strong Financial Position Net cash as at 30/06/11 US$ 3.8bn Distribution of cash and financial assets ($4.7bn) KKB 5% ATF Bank 10% HSBC 13% Citi 8% Halyk Bank 25% KMG NC Bonds 30% Deutsche bank 5% RBS 3% Other 1% 9

10 Reference Information Share information, 20/09/2011 Total Treasury Contacts Corporate website: kz Number of ordinary shares 70,220,935 1,782,318 Number of preferred shares 4,136,107 1,885,138 Investor relations GDRs per one ordinary share 6 ir@kmgep.kzkz Tickers Tel: +7 (7172) LSE KMG Reuters KMGq.L KASE RDGZ Bloomberg KMG LI 10