AKIPRESS.COM - Kazakhstan's state company KazMunayGaz said it is withdrawing its proposal to acquire the shares in KazMunaiGas Exploration Production (KMG EP) that it does not already own at a price of US$18.50 per GDR.

Since the announcement on 25th July, 2014 of KMG NC’s preliminary approach, the KMG EP Independent Directors have sought to engage with KMG NC and its advisers to achieve a satisfactory transaction.

In December the Independent Directors of KMG EP had indicated to KMG NC that they would recommend an offer of US$ 18.50 per GDR. Given the period of time that had elapsed the Independent Directors were however discussing with KMG NC the payment and level of a dividend in respect of the year ended 31st December 2014.

KMG EP is among the top three Kazakh oil and gas producers. The overall production in 2013 was 12.4 million tonnes (an average of 251 kbopd) of crude oil, including the Company’s share in Kazgermunai, CCEL and PKI. The Company’s total consolidated volume of proved and probable reserves including shares in the associates, as at the end of 2013 was 200 million tonnes (1.5 bn bbl), out of which 148.8 million tonnes (1.1 bn bbl) relates to Ozenmunaigas, Embamunaigas, and UOG (Rozhkovskoye field, Fyodorovskiy block). The Company’s shares are listed on the Kazakhstan Stock Exchange and the GDRs are listed on The London Stock Exchange. The Company raised over US$2bn in its IPO in September 2006.