OREANDA-NEWS. August 23, 2011. JSC KazMunaiGas Exploration Production (“KMG EP” or “the Company”) held an extraordinary general shareholders’ meeting, where the decision was taken to reorganize the Company by adjoining LLP “NBK” (“NBK”), the only shareholder of which is KMG EP. As reported before, the Company closed the deal on the acquisition of NBK from Eastern Gate Management Ltd. in September 2010 for USD 35 million.

NBK develops the “Novobogatinskoe West” field under a Subsoil Exploration and Production Contract expiring in 2027 with an option to extend. The field adjoins the licence area of “Embamunaigas” which allows NBK to use its existing infrastructure for oil treating, storage and transportation.

Taking into consideration the convenient geographical location of the “Novobogatinskoe West” field the Company has taken the decision to integrate the assets of NBK with the assets of the production branch of “Embamunaigas”.

The voluntary reorganization in the form of adjoining NBK to KMG EP will provide for the production efficiency increase and the optimization of the capital and operating costs.