OREANDA-NEWS. On 29 December 2008 was announced, that the Board of Directors of JSC KazMunaiGas Exploration Production (“KMG EP”, “The Company”) had approved the 2009 budget, based upon an assumed average Brent oil price for the year of USD 40 per barrel.

The Company’s total capital expenditure for 2009 is expected to amount to 36.5bn Tenge. (USD 295,5 million). This reduction in capex compared to 2008 is considered prudent by the Board in the current global economic situation.

Production on the Company’s main assets (Ozenmunaigas and Embamunaigas) is scheduled to reach 9,141million tonnes (184.32kbod), 3.8% lower than the previously forecast level. This is a result of lower oil prices making the maintenance of production levels at some wells uneconomical.

The approved budget for 2009 allows KMG EP to maintain a satisfactory level of operations whilst also reflecting an appropriate strategy for the current economic climate.