Zhaikmunai lowers output due to shortage of rail cars

energy

Zhaikmunai lowers output due to shortage of rail cars

By SRI ⋅ July 18, 2008 ⋅

(SRI) - Zhaikmunai LP, an LSE-listed oil company with operations in Kazakhstan, has announced that it has temporarily reduced daily oil production due to an unexpected shortage of available rail cars for oil transportation, the company says in a statement.

“Daily production of 6,700 bbls per day has been temporarily reduced to 2,000 bbls per day, effective immediately, while this issue is being resolved,” the statement said.

“Management has commenced negotiations with a shortlist of rail car operators to secure sufficient rail car availability going forward, through the signing of long-term rail car lease agreements. The initial results of these negotiations are expected shortly and management currently expects that production will resume at capacity during the next two weeks. If this is achieved then the impact on the company’s annual production is unlikely to be material.”

Zhaikmunai is an independent oil and gas company that specializes in exploration, production and sales of crude oil and gas condensate. Its main asset is the 324 sq. km Chinarevskoye field in western Kazakhstan.

As at July 1, 2007 Zhaikmunai’s reserves were estimated at 755 million barrels of oil equivalent. In 2007 the company produced 1.8 million barrels of oil, all of which was exported.