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The  main macroeconomic factors affecting the  financial position of the  Company include the dynamics of oil prices, inflation rates, fluctuations in exchange rates, in particular, the KZT-toUSD exchange rate.
90.4
mln tonnes
Oil Production
in Kazakhstan 2019

Key Macroeconomic Indicators Dynamics

Name 2016 2017 2018 2019
Average Brent price (DTD) 43.73 54.19 71.31 64.21
Inflation rate – Kazakhstan (%) 8.50 % 7.10 % 5.00 % 5.75 %
Average exchange rate (KZT to 1 USD) 342.16 326 344.71 382.75

The  average Brent price in 2019 decreased by 10 % compared to the  level of 2018. Besides fundamental economic factors (supply and demand), the oil market is extremely sensitive to geopolitical events. Currently, the oil market can be affected by several key geopolitical confrontations, both in the direction of increasing and decreasing oil prices: trade war between the USA and China, Brexit, sanctions against Iran and Venezuela, the US presidential election 2020, the Middle East (Syria, Yemen) instability, India – Pakistan armed conflict. .

Around 55 tln barrels of oil equivalent of hydrocarbon reserves have been discovered in the world. Existing technologies allow producing around 4.9 tln o.e. barrels. With advances in technology, by 2050, technically recoverable reserves can grow by 50 %  – this is one of the reasons why Embamunaigas JSC place high emphasis on development of new technologies and innovations.

According to the  RoK Ministry of Energy preliminary data, the volume of oil production in Kazakhstan in 2019 amounted to 90.4 mln tonnes. Thus, the record rates of 2018 were maintained, when production rates reached 90.36 mln tonnes. Maintaining high production rates is a significant achievement, given repairs carried out on large projects (Tengiz, Karachaganak and Kashagan).

Oil Production in Kazakhstan, mln tonnes
2015   
79.5
2016   
78
2017   
86.2
2018   
90.36
2019   
90.4
2020п
91
2023п
100
2024п
101
2025п
105
Source: RoK Ministry of Energy

By 2025, the annual oil production in Kazakhstan is expected to reach 105 mln tonnes, which will be ensured primarily by investment projects to expand and extend production at largest projects.

According to preliminary data, gas production in 2019 amounted to 56.3 bln cubic meters, or 1.4 % to 2018. According to the RoK Ministry of Energy, the  volume of domestic gas consumption is annually growing at the  level of 4–5 %. In  2019, domestic gas consumption amounted to 15.8 bln cubic meters (5 % increase as compared to 2018).

Oil production within Embamunaigas JSC, thous. tonnes

In 2019, the  volume of oil production exceeded the planned value by 4.69 thous. tonnes and also exceeded the level of 2018 by 4.36 thous. tonnes, which was no less significant. In  total, 2,899.69 thous. tonnes were produced in 2019. The average daily oil production amounted to 7,932 tonnes per day. The plan for 2020 is set at the level of 2,820 thous. tonnes.
OGPO 2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
Plan 2019
Actual
Var. 2020
Plan
Zhaiykmunaigas OGPO 962.6 960.3 954.2 953.7 944.2 922.0 923.3 1.3 881.0
Zhylyoimunaigas OGPO 964.5 962.6 989.1 1,034.9 1,109.9 1,118.6 1,120.4 1.8 1,100.7
Dossormunaigas OGPO 404.7 411.8 404.3 371.5 366.5 365.3 365.8 0.5 358.1
Kainarmunaigas OGPO 490.9 488.4 484.4 479.9 474.8 489.1 490.2 1.1 480.2
Embamunaigas JSC 2,822.7 2,823.0 2,832.0 2,840.0 2,895.3 2,895.0 2,899.7 4.7 2,820.0
Goals for 2020