PetroKazakhstan Gas Utilization
21 Abril 2005 - 9:00AM
PR Newswire (US)
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)
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