KMG EP admits 'challenge' to meet 2012 targets

Flagging production: KMG EP admits it will be a challenge to meet its year-end output target

London-listed KazMunaiGas Exploration Production has admitted it will be “challenging” to meet its full-year production forecast after seeing first quarter output fall due to adverse weather.

The explorer, which is the London-listed arm of Kazakh state oil and gas company KazMunaiGaz, cited adverse weather at western oilfields for the 5% drop in crude output to 3.03 million tonnes, or 249,000 barrels per day, compared to the first three months of 2011.

KMG EP said in a statement that meeting full-year production targets at two major subsidiary companies "may be more challenging than previously anticipated," Reuters reported.

Combined output at its major Uzenmunaigas and Embamunaigas subsidiaries fell 9% year-on-year to 1.91 million tonnes, or 156,000 barrels per day, in the…

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