Kazmunaigaz Exploration Regulatory News (KMG)

1 Oct 2007 11:52

JSC KazMunaiGas Exploration Prod01 October 2007 Standard & Poor's assigned KazMunaiGas EP credit rating and a corporate governance score. Astana, 1 October 2007 The progress of KazMunaiGas Exploration Production ("KMG EP" or "the Company"),the second largest oil company in Kazakhstan, on the international stage wasunderlined today when it became the first Kazakh company to be awarded aCorporate Governance Score (the "CGS"). In giving it a 5+ rating Standard & Poor's ("S&P") said that the CGS of theCompany reflects significant positive changes in the practices and procedures ofcorporate governance which resulted from the recent IPO. The Company uses IFRSaccounting standards, has an efficient Board with three independent directorsand has an efficient investor relations department. Shareholders' rights areclearly defined in the Company's Charter and the Code of Corporate Governance.The share registrar is independent and the Directors are elected by thecumulative voting system. From 2006 the Company formalised its dividend policyand the procedure of dividends payments follows best international practice. The Chief Executive of KMG EP, Askar Balzhanov, said: We are particularly delighted to be the first company in Kazakhstanto get this significant corporate governance score which is a recognition of oursuccess in moving the company forward and bringing it in line with internationalstandards. It is an achievement of the entire team here and only the beginningof what we are going to achieve. According to the Russian Association of Independent Directors, the CGS 5+ is thehighest score to date assigned to a CIS company that has the state as a majorityshareholder. The Company was also assigned a long-term BB+ rating with a S&P stable outlookwhich is only one notch lower than that of National Company KazMunayGas (BBB-/Stable), a 100% state owned company with 61% of voting shares of KMG EP. Notes: KMG EP is the 2nd largest Kazakh oil producing company with over 9.5 mmt (192kbopd) of crude production in 2006 and 203.2 mmt (1.5 billion bbl) of proved andprobable reserves at the end of 2006. The Company's shares are listed onKazakhstan Stock Exchange and the GDRs are listed on London Stock Exchange. TheCompany raised approximately US$2 billion in its IPO in October of 2006. CGS reflects S&P's assessment of a company's corporate governance practices andpolicies and the extent to which these serve the interests of the company'sfinancial stakeholders, with an emphasis on shareholders' interests. Thesegovernance practices and policies are measured against Standard & Poor'scorporate governance scoring methodology, which is based on a synthesis ofinternational codes, governance best practices and guidelines of good governancepractice. Companies with the same score have, in the opinion of S&P, similar companyspecific governance processes and practices overall, irrespective of the countryof domicile. The scores do not address specific legal, regulatory and marketenvironments, and the extent to which these support or hinder governance at thecompany level, a factor which may affect the overall assessment of thegovernance risks associated with an individual company. For further details please contact us at: KMG EP, Public Relations (+7 717 2 977 908, +7 7172 977 924)Lyazzat KokkozovaE-mail: pr@kmgep.kz KMG EP, Investor Relations (+7 7172 975433)Alexander GladyshevE-mail: ir@kmgep.kz WMC Communications Ltd (+44 207 930 9030)Elena DobsonE-mail: Elena.dobson@wmccommunications.com Forward-looking statements This document includes statements that are, or may be deemed to be, ''forward-looking statements''. These forward-looking statements can be identifiedby the use of forward-looking terminology, including, but not limited to, theterms ''believes'', ''estimates'', ''anticipates'', ''expects'', ''intends'', ''may'', ''target'', ''will'', or ''should'' or, in each case, their negative orother variations or comparable terminology, or by discussions of strategy,plans, objectives, goals, future events or intentions. These forward-lookingstatements include all matters that are not historical facts. They include, butare not limited to, statements regarding the Company's intentions, beliefs andstatements of current expectations concerning, amongst other things, theCompany's results of operations, financial condition, liquidity, prospects,growth, potential acquisitions, strategies and as to the industries in which theCompany operates. By their nature, forward-looking statements involve risk anduncertainty because they relate to future events and circumstances that may ormay not occur. Forward-looking statements are not guarantees of futureperformance and the actual results of the Company's operations, financialcondition and liquidity and the development of the country and the industries inwhich the Company operates may differ materially from those described in, orsuggested by, the forward-looking statements contained in this document. TheCompany does not intend, and does not assume any obligation, to update or reviseany forward-looking statements or industry information set out in this document,whether as a result of new information, future events or otherwise. The Companydoes not make any representation, warranty or prediction that the resultsanticipated by such forward-looking statements will be achieved. This information is provided by RNS The company news service from the London Stock Exchange