PetroKazakhstan

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Fredrik
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Post by Fredrik »

An interesting article about the history of PetroKazakhstan as free content in today's National Post. I used to laugh at this company. I'm not laughing now. Should have bought some shares.

"Calgary-based PetroKazakhstan, which was renamed two years ago, is the least talked about but the most successful of Canada's six integrated oil companies in its stock price appreciation. It has grown into a $4-billion enterprise, with 3,000 employees in the Central Asian state (including 100 Canadian expatriates). It is also the only major Canadian energy company to operate successfully in the former Soviet Union..."

Hopefully this URL will work for a while:

http://www.canada.com/national/nationalpos...00-14e59c661dbd
Fredrik
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Post by Fredrik »

PKZ down $3.68 a share today, a decline of ~9.5%. Fortunately (now) I don't own any. A lot of risk in this one = Kazakhstan may force them to reduce production by 73,000 bpd (almost 1/2 of production), also "antitrust" disputes with Kazakhstan, and a new legal dispute with Russian partner Lukoil. Looks like the Kazakhstan "government" has noticed some money going into the hands of PKZ shareholders (imagine that!), instead of their own pockets. Another Yukos?

BTW, anyone know what "gas flaring" is? Thanks.

PetroKazakhstan 1st-qtr profit up 90 percent
Tue May 3, 2005 10:03 AM ET
(In U.S. dollars unless noted)

TORONTO, May 3 (Reuters) - PetroKazakhstan Inc.'s first-quarter profit soared almost 90 percent as the Canadian company, which operates solely in the central Asian republic, reported higher revenue and an uptick in production, it said on Tuesday.

PetroKazakhstan, which is embroiled in a series of disputes with Kazakhstan antitrust authorities and its Russian partner in a production joint venture, earned $165.6 million, or $2.16 a share, up from year-earlier $87.5 million, or $1.08 a share.

Cash flow rose 68 percent to $186.4 million, or $2.43 a share, from $110.8 million, or $1.37 a share.

Production rose 4.8 percent to 149,732 barrels of oil equivalent a day, the company said. Production was temporarily crimped by remedial work at its Kumkol South Field, it said. By the end of March, daily oil production from all fields had increased to 158,200 bopd.

But it estimates production will be curtailed by about 50,000 bopd because of orders by Kazakh regulators to eliminate gas flaring at its Kumkol oilfields immediately. It also warned that production could be cut by another 23,000 bopd if the same orders are given for its KazGermunai joint venture.

Gross revenue was $502.5 million in the quarter, compared to $325.3 million in the same period last year.

http://yahoo.reuters.com/financeQuoteCompa...03341324_newsml

Isautier to retire as PetroKazakhstan CEO
Tue May 3, 2005 12:13 PM ET

TORONTO, May 3 (Reuters) - Bernard Isautier, who guided PetroKazakhstan's emergence from insolvency into one of Canada's most profitable oil companies, will retire as president and chief executive in September after six years at the helm, the company said on Tuesday...

More about Isautier and the history of PKZ (the old Hurricane Hydrocarbons) here:
http://yahoo.reuters.com/financeQuoteCompa...03682063_newsml
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AltaRed
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Post by AltaRed »

"Gas Flaring" is mostly about burning off natural gas that comes naturally with the production of oil. It is separated from the oil as part of oil treatment and processing, rather than conserving it (e.g. re-injecting it into a suitable reservoir) or processing it in a gas processing plant for sale. Gas flaring is most prevalent in oil fields where it costs more to process it than what can be obtained for it in the marketplace, which is either due to low price or lack of market period.

Flaring of gas has decreased substantially around the world over the past 20 years either because it has become more economical to conserve or sell it, or because government regulatory bodies insist on conservation. In recent times, flaring of gas has been most common in Nigeria before LNG projects came along to actually create a market for it.

I won't speculate on the reason for what appears to be an excessive squeeze by the Kazaks in this specific instance. Shutting in oil production hurts the national coffers of the Kazaks too.
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Fredrik
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Post by Fredrik »

Thanks AltaRed.

Gas flaring sounds really bad = a big waste of energy and also bad for the environment. PKZ should find a solution for that problem.
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