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Kazakh KMG E&P 2008 oil output up on acquisitions

Kazakh oil producer KazMunaiGas Exploration and Production (KMG E&P) said its oil output grew 12.4% in 2008 to 12 million tons thanks to more crude produced by its new ventures.

In 2007, KMG E&P bought 50% stakes in smaller Kazakh producers Kazgermunai and CCEL. Production at its mature core fields was flat last year.

“The increase is primarily a result of the full-year impact of the acquisitions completed in 2007,” it said in a statement.

“In 2009 we will continue to identify appropriate value enhancing opportunities taking advantage of our significant financial resources and growth potential,” the statement quoted KMG E&P Chief Executive Askar Balzhanov as saying.

Kazakh state oil and gas company KazMunaiGas owns a majority stake in London-listed KMG EP. (Reuters)