OREANDA-NEWS. April 07, 2010. The meeting of JSC KazMunaiGas Exploration Production (“The Company”, “KMG EP “) Board of Directors (“BoD”) took place yesterday. It was the first meeting since the new Board was elected at the Annual General Meeting of Shareholders (“AGM”) on 26 March 2010.

At the meeting Askar Balzhanov, Managing Director of JSC National Company KazMunaiGaz (NC KMG) on Exploration and Production was elected Chairman of the Board of Directors of KMG EP. In addition, the Board appointed Kiykbay Eshmanov a member of the Management Board, who replaced Bagitkali Biseken as the Director of Uzenmunaigaz (“UMG”) production unit. The Committees of the Board were also formed.

The Board of Directors of KMG EP has considered a range of commercial issues, staffing and organizational matters. The Board has also discussed all the issues within its jurisdiction that were brought forth by the Reconciliation Committee established to negotiate with the participants of the strike that took place at UMG from 1 March to 18 March 2010.

Deputy Head of the Mangistau administration, Amankeldy Aitkulov and Co-Chairman of the Reconciliation Committee, Head of the Zhondeu LLP Trade Union, Iklas Shangreev attended the meeting of the Board of Directors. The Board heard the details on the issues, raised by the Reconciliation Committee, and instructed the Company management accordingly.

In particular, the Board members considered the protesters’ demand for the resignation of the CEO of KMG EP, Kenzhebek Ibrashev. The Board, however, decided he should remain in office.

In view of the results of the exploration activities, the Board agreed to amendments to the Company’s Exploration Program for 2010, within the approved budget. The Company will continue evaluating subsalt prospects, but the updated program for this year will not include drilling of a subsalt well on Liman block. Additional post-salt wells will be drilled on blocks R9 and Liman. The new program also includes purchasing equipment and conducting necessary research.