KazMunaiGas EP’s $5 billion spending splash

26 October 2011

Kwok W Wan, LONDON: Kazakhstan’s KazMunaiGaz Exploration Production (KMG EP) is sitting on a $5 billion cash pile and looking for ways to spend it. The London-listed subsidiary of the national oil company aims to generate 20% of its revenue from outside Kazakhstan in the next five years. KMG EP also wants natural gas assets to increase to 15-20% of its portfolio, said KMG EP chief executive Askar Balzhanov.

“Between $1.5 billion and $2.0 billion will be channelled towards maintaining production levels. A further $1 billion will be invested in large-scale exploration efforts. And between $2.0 billion and $2.5 billion is to be spent on acquisitions within the next two to three years,” Balzhanov said, adding that around two-thirds of the acquisitions would be inside Kazakhstan.

“Regarding assets outside Kazakhstan, we have interest in and are negotiating for an asset in Russia. We are also...



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